ANALYSIS OF THE DETERMINANTS OF DIVIDEND PAYOUT OF CONSUMER GOODS FIRMS IN NIGERIA
ANALYSIS OF THE DETERMINANTS OF DIVIDEND PAYOUT OF CONSUMER GOODS FIRMS IN NIGERIA

Summary/Abstract: The study examines the determinants of dividend payout of consumergoods companies listed on the Nigerian Stock Exchange. The Nigerian StockExchange has 28 listed consumer goods companies. Purposive samplingtechnique was used and a sample of nine consumer goods companies for aduration of ten years from 2006 to 2015 was selected. Secondary data werecollected from audited financial statements of the companies from the websites ofthe selected companies. Dividend payout ratio was the dependent variable whilethe independent variables were market value, profitability, financial leverage,company size and previous year dividend payout. Descriptive statistics andmultiple regressions were used. Results showed that company market value hassignificant positive effect on dividend payout; company profitability has positive,but insignificant effect on dividend payout; company leverage has negative andinsignificant effect on dividend payout; company size has negative andinsignificant effect on dividend payout; and previous year’s dividend hassignificant positive effect on dividend payout. The study thus concluded thatmarket value and previous year’s dividend are the major determinants ofdividend payout in consumer goods sector in Nigeria.

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