Firm-Level Determinants, Ownership Structure and Dividend Policy of Listed Non-Financial Firms in Nigeria

Abstract

Researchers and policy makers in both developed and developing economies have acknowledged the vital roles play by corporate dividend policy in enhancing shareholders wealth. Although there is a growing number of studies on corporate dividend policy, the present study is strategically designed to observe the moderating effects of industry munificence on the relationship between firm level determinants and ownership structure on dividend policy of listed non-financial firms in Nigeria. The study employed a quantitative research approach and utilised data from 62 non-financial listed firms on the Nigerian Stock Exchange for the period between 2008 and 2017. The data collected were analysed through the aid of static and dynamic model which is Pooled Ordinary Least Squares. Remarkably, firm level determinants and ownership structure significantly influence dividend policy. In general, these findings provide an alternative framework for investors and stock market participants to improve their investment decisions. On the other hand, it will equally enhance board members understanding on which firm level determinants and ownership structure variables are more influential in developing and implementing firms’ dividend policy, since effective and efficient dividend policy maximises shareholders’ wealth.