Firm Performance and Dividend Policy: Evidence From Listed Service Firms in Nigeria

  • Sinebe, Michael Tonbraladoh Department of Accounting, Faculty of Management Sciences, Delta State University
DOI: https://doi.org/10.17605/cajitmf.v4i6.530
Keywords: Dividend payout, Return on Asset, Return on Equity, Tobin’s Q, Earnings per Share, firm Performance

Abstract

This study examines the relationship between firm performance and dividend payout of listed firms in Nigeria. The study employed secondary data retrieved from the published financial records of 16 service listed firms in Nigeria over a period of 10 years beginning from 2012 to 2021. The paper adopted four performance indices which includes return on asset (ROA), return on equity (ROE), earnings per share (EPS) and Tobin’ s Q (TOBQ). The dataset were analyzed using the descriptive statistics, diagnostic tests and inferential statistics. The study specified a linear model which was tested using the simple regression analysis as a result of the nature of the study. The findings revealed that Tobin’s Q has significant influence on dividend payout; whereas, return on asset, return on equity and earnings per share maintained an insignificant influence on dividend payout of listed firms. The findings indicated that collectively firm performance obtained significant relationship with dividend payout of listed service firms in Nigeria. On the basis of the result, the study recommends that companies should give maximum attention to their financial dealings and operations, as their performance determines the involvement and commitment of shareholders.

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Published
2023-06-24
How to Cite
Tonbraladoh, S. M. (2023). Firm Performance and Dividend Policy: Evidence From Listed Service Firms in Nigeria. Central Asian Journal of Innovations on Tourism Management and Finance, 4(6), 129-139. https://doi.org/10.17605/cajitmf.v4i6.530
Issue
Vol 4 No 6 (2023): June 2023
Section
Articles
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