Earnings impact on dividend payout decisions on the Nigerian stock exchange

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Faculty of Management Sciences, Ladoke Akintola University, Ogbomosho


The argument that the link between earnings and dividend has weakened stimulates the interest to re-examine the relationship. Based on a sample of 774 firm-year observations drawn from 126 non-financial firms listed on the Nigerian Stock Exchange, the study examined the effect of the main determinants of dividend payout as given in Lintner's model and other variables on dividend payout decisions in the Nigerian market. Both descriptive analysis and logit regression analysis were employed in proffering answers to the research questions raised. Findings indicate strong support for Lintner's model as it was revealed that the level of earnings and past dividend are still paramount in dividend decision of firms listed on the exchange. Thus, the study concludes that the relationship between dividend and earnings has not weakened on the Nigerian Stock Exchange.



Earnings, Dividend, Payout, Stock Exchange