Corporate Governance Study Ownership Structure and Dividend Policy of Listed Manufacturing firms in Nigeria

Gbenga Ekundayo (), Clement Ozele () and Mary Josiah ()
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Gbenga Ekundayo: Oman College of Management & Technology
Clement Ozele: Igbinedion University
Mary Josiah: Igbinedion University

EuroEconomica, 2023, issue 1(42), 48-61

Abstract: In this research, we examine the impact of Nigerian listed industrial companies’ dividend policies on their ownership structure. This study spans a period of 11 years, from 2010 to 2020. Ownership concentration and management ownership were chosen as the study’s independent variables. An analysis of descriptive statistics, a correlation matrix, and an examination of the normality of residuals was carried out as part of the pre-regression process It was first tested using Panel Ordinary Least Squares Regression to see if it violated the Gauss-Markov Theorem and its assumptions. In addition, post-regression tests for homoscedasticity and multicollinearity were performed. There was a test for fixed and random effects as well. An analysis using dummy variables shows that, over the period under consideration, ownership concentration had a major negative impact on the dividend policy of Nigerian publicly traded manufacturing firms, whereas management-owned enterprises had an even more profoundly beneficial influence. From these findings, we can deduce that management ownership has a considerable positive impact on dividend policy while ownership concentration has a negative impact on dividend policy’s yield measure. Management should therefore create a varied ownership structure, with focus on components of management ownership, to ensure that the dividend policy decision is balanced and prevents expropriation, handle agency issues, and set the company on a sustainable long-term course.

Keywords: Ownership structure; Dividend Policy; Ownership concentration; Managerial ownership (search for similar items in EconPapers)
Date: 2023
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