Financial Flexibility and Dividend Payout

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Date

2017

Journal Title

Journal ISSN

Volume Title

Publisher

Departments of Accounting & Finance and Business Administration

Abstract

Recent decline in the average payout ratios and suspected decline in financial flexibiliry affirms 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 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 were employed to investigate how financial flexibility explains "decision to pay or not "pay" and "amount of dividends paid" respectively. Findings indicate that financial flexibility.

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Keywords

Cashflow, Dividend, Financioiflexibility, Leverage, Signaling

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