Dividend Policy and Firms Value: Evidence from Quoted Food and Beverages Companies in Nigeria

Wasiu Abiodun Sanyaolu (), Jimoh Odunayo () and Amos Olufemi Craig ()
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Wasiu Abiodun Sanyaolu: Department of Accounting, College of Arts, Social and Management Sciences Crescent University, Abeokuta, Nigeria
Jimoh Odunayo: Finance Controller, Q and Q Control Services, Nigeria
Amos Olufemi Craig: Department of Accountancy, D.S Adegbenro, ICT Polytechnic,Itori- Ewekoro,Ogun State, Nigeria

Business & Management Compass, 2019, issue 2, 133-147

Abstract: The paper investigated the effect of dividend policy on firms’ value of eight Nigerian food and beverages companies between 2008 and 2016. Fixed effect was employed as data analytical tools. Result indicates that dividend yield, dividend payout ratio and leverage have no significant negative effect on firms’ value. On the other hand, dividend per share, earnings per share and firm size were found to exert significant positive effect on firms’ value. This implies that dividend announcement and amount involved will increase firms’ value. It is therefore recommended that firms should adopt dividend policy that will translate to higher firms’ value.

Keywords: Dividend policy; firms’ value; Nigeria; Performance; Leverage and Firms’ value (search for similar items in EconPapers)
JEL-codes: G35 (search for similar items in EconPapers)
Date: 2019
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