Dividend Decisions and Market Value of Firms in Nigeria

IF 3 Q2 BUSINESS, FINANCE

Journal of Public Budgeting, Accounting and Financial Management Pub Date : 2023-10-12 DOI:10.56201/jafm.v9.no9.2023.pg168.178

OTUYA Sunday, OFEIMUN Godwin, Kevwe Rita OGWU, EDIKE Sunday

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Abstract

The study investigated the factors that could influence dividend decision and value of the firm. Anchored on signaling theory, the study adopted both cross-sectional and longitudinal research designs. The population of the study consisted of all listed manufacturing firms in Nigeria. The final sample size after filtering was 41 manufacturing firms giving a total of 451 year end observations. The study adopted three separate econometric models for capturing and testing for the relationship between dividend decisions and firm value. Findings of the study revealed that profitability has a significant positive effect on dividend payout while availability of investment opportunities was found to be positive but not significant. Leverage was also found to have a negative but not significant effect on dividend payout. Further, dividend payout, profitability, leverage, and investment opportunities were found to have significant positive effect on firm value. The study concludes that dividend decisions influence value of listed manufacturing firms in Nigeria and recommends amongst others that corporate managers should implement dividend policy that will enhance shareholders wealth maximization and take care of the investment opportunities of the firm.

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尼日利亚公司股利决策与市场价值

本研究探讨了可能影响股利决策和公司价值的因素。本研究以信号理论为基础，采用了横断面和纵向两种研究设计。研究对象为尼日利亚所有上市制造企业。过滤后的最终样本量为41家制造企业，总共451个年终观察值。该研究采用了三个独立的计量经济模型来捕获和测试股息决策与公司价值之间的关系。研究结果表明，盈利能力对股息支付有显著的正向影响，而投资机会的可用性是积极的，但不显著。杠杆也被发现对股息支付有负但不显著的影响。此外，股息支付、盈利能力、杠杆率和投资机会对公司价值有显著的正向影响。该研究得出的结论是，股息决策影响尼日利亚上市制造业公司的价值，并建议除其他外，公司经理应实施股息政策，这将增强股东财富最大化，并照顾公司的投资机会。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Public Budgeting, Accounting and Financial Management Social Sciences-Public Administration

CiteScore

7.80

自引率

19.40%

发文量

期刊介绍： Published four times a year, the Journal of Public Budgeting, Accounting & Financial Management (JPBAFM) is an international refereed journal which aims at advancement and dissemination of research in the field of public budgeting, accounting, auditing, financial and performance management. The journal is committed to be an outlet for rigorous conceptual and empirical works aimed at challenging and innovating the field of accounting, management and governance in entities operating in the public sphere or public-private sphere (territorial government entities, universities, schools, hospitals as well as state-owned enterprises, hybrid organizations, public and private partnerships, non-profit organizations, NGOs, etc.).