Browsing by Author "SIYANBOLA, AKEEM ADETUNJI"

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    FINANCIAL FLEXIBILITY AND DIVIDEND PAYOUT: EVIDENCE FROM NIGERIAN FINANCIAL SECTOR
    (DEPARTMENTS OF ACCOUNTING AND FINANCE & BUSINESS ADMINISTRATION, FOUNTAIN UNIVERSITY, OSOGBO, NIGERIA, 2017) ABDULKADIR, RIHANAT IDOWU; ABDURRAHEEM, ABDULAZEEZ ADEWUYI; SIYANBOLA, AKEEM ADETUNJI
    The recent decline in the average payout ratios and suspected decline in financial flexibility of firms listed in the financial service sector of the Nigerian Stock Exchange stimulates the interest to conduct this study. The study examines whether dividend payment decisions can be explained by the financial flexibility of the sampled firms. To achieve this, the study obtained data from the published financial statements of the firms. Binomial logistic regression and panel linear regression was employed to investigate how financial flexibility explains “decision to pay or not to pay” and “amount of dividends paid” respectively. Findings indicate that financial flexibility (measured by cash flow) influences firms’ decision “to pay” or “not to pay” as well as the amount of dividends paid. Findings indicate further that profitability and size are also important determinants of the amount of dividend payout. The result of the study is in line with signalling theory which indicates that payment of dividend is a signal of the financial health of the firm. In line with findings, the study concludes that dividend payout of firms in the financial service sector of the Nigerian Stock Exchange is strictly guided by their financial health. Thus, the study recommends that regulatory authorities should adopt policy measures that will enhance a firm’s financial flexibility to strengthen their ability for the attainment of the overall objective of the firm (maximization of shareholders’ wealth).