Ownership Structure and Dividend Policy: An Analysis of Consumer Goods Indusry in Nigeria

Mukhtar Musa BAko ()
Additional contact information
Mukhtar Musa BAko: Bayero university Kano

No 2604448, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: The study is aimed at determining the impact of ownership structure on dividend policy of firms listed in the Nigerian Consumer Goods Industry. The study employs the ex-post-facto research design. Data were collected from annual reports and accounts of sampled companies and were analysed using descriptive statistics, correlation and multiple regression methods. The study finds that insider share ownership (ISO) and outsider share ownership (OSO) have negative and insignificant impact on dividend per share (DPS) while block share ownership (BSO) has positive and insignificant impact on DPS. However, the impact of control variable earnings per share (EPS) on DPS is positive and significant. The study recommends that, in the analysis of dividend policy of companies in the consumer goods industry in Nigeria stakeholders should pay limited attention to the ownership structure of the company but the bottom line, as it is the earnings that matters not the dividend or ownership structure. This is because dividend per share is determined significantly by earnings not how the company is owned. However, considering dividend payout ratio as determinant of dividend payment, it is recommended that dividend clientele may be encouraged to invest in the consumer goods industry in Nigeria where there is high rate of block share ownership.

Keywords: Dividend Policy; Ownership Structure; Agency Theory; Nigeria (search for similar items in EconPapers)
JEL-codes: G30 M49 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2015-07
New Economics Papers: this item is included in nep-acc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Proceedings of the Proceedings of the 17th International Academic Conference, Vienna, Jul 2015, pages 25-38

Downloads: (external link)
https://iises.net/proceedings/17th-international-a ... =26&iid=010&rid=4448 First version, 2015

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:2604448

Access Statistics for this paper

More papers in Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences
Bibliographic data for series maintained by Klara Cermakova ().