Proceedings of the 17th International Academic Conference, Vienna

OWNERSHIP STRUCTURE AND DIVIDEND POLICY: AN ANALYSIS OF CONSUMER GOODS INDUSRY IN NIGERIA

MUKHTAR MUSA BAKO

Abstract:

The study is aimed at determining the impact of ownership structure on dividend policy of firms listed in the Nigerian Consumer Goods Industry. The study employs the ex-post-facto research design. Data were collected from annual reports and accounts of sampled companies and were analysed using descriptive statistics, correlation and multiple regression methods. The study finds that insider share ownership (ISO) and outsider share ownership (OSO) have negative and insignificant impact on dividend per share (DPS) while block share ownership (BSO) has positive and insignificant impact on DPS. However, the impact of control variable earnings per share (EPS) on DPS is positive and significant. The study recommends that, in the analysis of dividend policy of companies in the consumer goods industry in Nigeria stakeholders should pay limited attention to the ownership structure of the company but the bottom line, as it is the earnings that matters not the dividend or ownership structure. This is because dividend per share is determined significantly by earnings not how the company is owned. However, considering dividend payout ratio as determinant of dividend payment, it is recommended that dividend clientele may be encouraged to invest in the consumer goods industry in Nigeria where there is high rate of block share ownership.

Keywords: Dividend Policy, Ownership Structure, Agency Theory, Nigeria

DOI: 10.20472/IAC.2015.017.010

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