There have been several recent concerns about the deteriorating state of Nigerian companies’ performance. Many investors in Nigeria over the years have accused the quoted companies of not doing enough to improve their performances. Researchers are concerned about the factor that affects performance as a result of this. Therefore, this paper examines the influence of stock liquidity on the financial performance of companies in Nigeria. Data used are sourced from the financial statements of selected companies and the fact book of the Nigeria Stock Exchange for the period between 2012 and 2019. Data are analyzed using both descriptive and inferential statistics. The empirical findings of this study confirm that liquid stock, proxied by the turnover ratio (TOR), greatly impacts the performance of companies in Nigeria. Sequel to this, this paper concludes that the degree of operational success of Nigeria’s corporate entities is commensurate with the liquidity status of their stocks.
Payment of dividends among firms in Nigeria has become irregular and setting an optimal dividend policy has become an herculean issue. Studies in developed countries indicated that stock liquidity influences dividend payout and this has not been well established in Nigeria. Hence, this study examined the effect of liquid stock on dividend payment of fifty (50) non-financial quoted companies in Nigeria between 2012 and 2019. The study employed secondary source of data collection and analysis was done using descriptive statistics and inferential statistics. The study model expressed the effect of Turnover Ratio, Firm Size, Financial Leverage, Cash Holding and Investment Opportunity on Dividend Payment Ratio using OLS Panel Regression. The results based on the random effect model showed that turnover ratio (TOR) which is a proxy for liquid stock accounts for a significant positive influence on dividend payment while other variables showed negative influence except cash and cash equivalent. Based on the above findings, the study concluded that for most of the companies operating in the non-financial sector of the Nigerian economy, the influence of liquid stock on the amount paid as dividend is positive and significant and those firms with more liquid stocks pay higher amount of dividend than those with less liquid stocks.
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