Browsing by Author "Ijaiya, Muftau A."

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    Dividend relevance during financial crisis: A study of quoted Nigerian Banks
    (Department of Business Administration, Adamawa State University, Mubi, 2013) Abdulkadir, Rihanat Idowu; Ijaiya, Muftau A.; Baffa, A.M.
    Dividend relevance suggests that dividend policies have effects on market value of the firm as reflected in their share prices. The study examined whether this relevance is maintained during financial crisis. The study covered banks listed on the Nigerian Stock Exchange during the period of 2008 to 2009 as it is believed that they account for huge portion of the dividend payments. Data was sourced majorly from the DataStream (Thomson Reuter’s Worldscope database). A model was formulated to test whether the dividend payout policies of banks influence their share prices during crisis period using market price per share as the dependent variable and dividend payout ratio as the main independent variable. It was revealed that dividend payout ratio is positively and significantly related to share prices during the crisis period. Thus, dividend relevance holds even during financial turmoil. Based on this, it was recommended that firms should not use crisis period as an opportunity to cut or omit dividends as it may impact negatively on their market value although such cut or omission may be necessary for strategic reasons in some situations.
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    Explanation for dividend payout policies of listed firms in Nigeria: Macroeconomic factor or firm specific characteristics
    (Department of Accounting, University of Jos, 2012) Abdulkadir, Rihanat Idowu; Ijaiya, Muftau A.; Baffa, A.M
    This study was carried out to investigate whether macroeconomic factor (proxied by inflation) affects dividend payout of firms while controlling for firm specific characteristics. Data was obtained from Datastream (worldscope database) on a final sample of sixty- four companies. Results from random effect regression indicates that inflation has no significant effect on dividend payout of listed firms in Nigeria. Profitability and investment were found to be significant in explaining dividend payout. The study concludes that some of the firms are not paying dividends due to the need to explore viable investment opportunities. Thus, it was recommended that investors should be carried along on the justification for which the firm omits or cut dividend to avoid negative impact on firm’s value.