Dividend Policy and Corporate Financial Performance: Evidence from Selected Listed Consumer Goods Firms in Nigeria

Ugwu, Chukwuma C.; Onyeka, Virginia Nnenna; Okwa, Iyana E.

doi:10.31014/aior.1992.03.03.262

Cited by 5 publications

(5 citation statements)

References 10 publications

(13 reference statements)

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“…According to Velnampy, Nimalthasan and Kalaiarasi (2014), it stated that the relationship between dividend pay-out ratio and return on equity is not significance. This result is consistent with Narang (2018); Musa et al (2020); Ugwu, Onyeka and Okwa (2020); Cyril, Emeka and Cheluchi (2020) who found that there was a positive and insignificant between the variables.…”

Section: Discussionsupporting

confidence: 91%

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The Impact of Dividend Policy on Firm Performance in Public Listed Company in Malaysia

Foong¹,

Malek²

2022

IJARBSS

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The aim of this study is to investigate the relationship between dividend policy and firm performance in Public listed company in Malaysia. The sample collected for this study covered 8 years from 2011 to 2018. This study will focus one of the subsectors from consumer product and service sector which listed in Bursa Malaysia. The total observation was 200. This study used two measurements for firm performance which are return on equity (ROE) and return on asset (ROA). The measurement of dividend policy is earning per share (EPS), dividend payout ratio (DPR) and price earnings ratio (PER). Based on the findings, there is significant relationship between EPS with ROE and ROA. For PER, there is an insignificant relationship with ROE but it has significant relationship with ROA. However, DPR has insignificant relationship with ROE and ROA. The result from this study will brings advantage and usefulness for investor as well as policy marker for in Malaysia because it provides better understandings and knowledge on dividend policy on firm performance for consumer product and service sector in Malaysia.

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Section: Discussionsupporting

confidence: 91%

“…A related study by Ugwu, Onyeka and Okwa (2020). The researchers conducted the study for consumer good firms in Nigeria on dividend policy and corporate financial efficiency.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Dividend Policy on Firm Performance in Public Listed Company in Malaysia

Foong¹,

Malek²

2022

IJARBSS

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“…Firm characteristics and dividend policy Ugwu et al (2020) studied the Consumer Goods Sector in Nigeria, using correlation and ex-post facto research designs for data from 2015 to 2019, and found a significant positive relationship between firm characteristics and dividend policy. Likewise, Sanyaolu et al (2019), in their study of the Food and Beverage Sector of the Nigerian exchange, using panel data analysis on data from 2008 to 2016, reported a significant positive influence of firm characteristics on dividend policy.…”

Section: 21mentioning

confidence: 99%

Which Firm Characteristics Drive Dividend Policy and Firm Value in the Consumer Goods Sector of the Nigerian Exchange Group?

2023

RJFA

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This study investigates the influence of various firm characteristics-institutional ownership, turnover, return on assets, and equity to debt ratio-on firm value and dividend policy within the Consumer Goods Sector of the Nigerian Exchange Group (NGX). Employing a multivariate multiple regression (MMR) approach supplemented by robustness tests, this study leverages a dataset spanning 2013 to 2022 from 16 purposively selected firms. The results indicate that Return on Assets and Equity to Debt Ratio are the most significant and positive predictors for both firm value and dividend policy across the models used in this study. Institutional ownership substantially affects firm value under MMR but failed under simultaneous regression analysis. It is also not a significant dividend policy across models. Turnover, the log of annual sales, does not significantly impact either firm value or dividend policy across models. This study fills a methodological and geographical gap in the literature by adopting MMR, supplemented by robustness tests, and providing sector-specific insights in a developing market, thus offering implications for managers, investors, and regulators.

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“…The research findings indicate that companies with higher profitability, lower leverage, good liquidity, and larger size tend to experience lower underpricing during an IPO. This indicates that companies with strong financial performance and larger size have higher attractiveness to investors, resulting in their IPO stock prices tending to approach their true value (Daniswara & Daryanto, 2020;Ugwu et al, 2020;Lim & Rokhim, 2021;Basdekis et al, 2023;Jatoi & Rasheed, 2023;Karima & Ghazali, 2023;Will & Simorangkir, 2023). Additionally, research also shows that non-financial information factors such as Company Age, Auditor Reputation, Underwriter, and Industry Type also influence the level of underpricing.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Financial Indicators and Underwriter Reputation on Depreciated Stock Prices

Gunanto

2023

JAF

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This research aims to analyze the influence of financial indicators and underwriter reputation on the level of stock underpricing during Initial Public Offerings (IPOs) on the Indonesia Stock Exchange (IDX). The phenomenon of underpricing has gained attention in securities market research in various countries. This study adopts a conceptual analysis approach based on a review of existing literature. The theory of asymmetric information also serves as the foundation for explaining the underpricing phenomenon in IPOs. Factors include Return on Equity (RoE), Financial Leverage, Current Ratio, Earnings per Share (EPS), Size, Proceeds, Company Age, Auditor Reputation, Underwriter, and Industry Type. Therefore, this research aims to test the influence of financial indicators and underwriter reputation on the level of stock underpricing in IPOs on the IDX. Consequently, the findings from this research can be used as a basis for comparison with similar studies in other countries. This can help in understanding the differences and similarities in the phenomenon of stock valuation in various global capital markets. Keywords: IPO Underpricing, Financial indicators and Underwriter reputation

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Dividend Policy and Corporate Financial Performance: Evidence from Selected Listed Consumer Goods Firms in Nigeria

Abstract: The Journal of Economics and Business is an Open Access publication. It may be read, copied, and distributed free of charge according to the conditions of the Creative Commons Attribution 4.0 International license.

Cited by 5 publications

References 10 publications

The Impact of Dividend Policy on Firm Performance in Public Listed Company in Malaysia

The Impact of Dividend Policy on Firm Performance in Public Listed Company in Malaysia

Which Firm Characteristics Drive Dividend Policy and Firm Value in the Consumer Goods Sector of the Nigerian Exchange Group?

The Influence of Financial Indicators and Underwriter Reputation on Depreciated Stock Prices

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