Explanation for dividend payout policies of listed firms in Nigeria: Macroeconomic factor or firm specific characteristics
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Date
2012
Journal Title
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Publisher
Department of Accounting, University of Jos
Abstract
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.
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Keywords
Dividend, Payout, Macroeconomic Factor, Firm Specific Characteristics