Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?

John A. Olayiwola () and Folorunsho Ajide
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John A. Olayiwola: Obafemi Awolowo University, Ile-Ife, Nigeria, Postal: Department of Management and Accounting,, https://www.unilorineconsworkingpapers.com.ng/

No 12, Working Papers from Department of Economics, University of Ilorin

Abstract: The study investigates the impact of oil price, institutional quality (proxied by corruption and legal environment) and firm-implicit elements on the dividend policy of listed Nigerian companies for a period of 2001-2016. System-GMM analysis was used in the estimation process and findings revealed that oil price, quality of institutions and firm-inherent drivers play significant roles in firms’ dividend decisions. Oil price, institutional quality and firm-implicit variables exerted statistically significant influence on dividend per share. This study thus suggests, that prevailing institutional and macro-economic conditions should be considered when making dividend policy decisions and that the nation’s high corruption index poses great threats to dividend behaviors of Nigerian corporate life.

Keywords: Dividend per share; Corruption; Legal System; Generalized Moment method; Oil Price Volatility; Nigeria. (search for similar items in EconPapers)
Pages: 16 pages
Date: 2019-06-22
New Economics Papers: this item is included in nep-ene
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