Dividend Policy and Financial Performance (Return on Assets) of Listed Manufacturing Firms in Food and Beverage Industry in Nigeria
| dc.contributor.author | Sanni, Micheal Rotimi | |
| dc.date.accessioned | 2023-08-04T17:28:07Z | |
| dc.date.available | 2023-08-04T17:28:07Z | |
| dc.date.issued | 2022 | |
| dc.description.abstract | Dividend policy is a pointer to the future performance of a company. It is against this background that this study investigated the effect of dividend policy on the financial performance (Return on Assets) of firms listed in food and beverage industry in Nigeria over a period of ten years, from 2010 to 2019. Panel data from audited financial statements from 14 purposely selected firms in the industry were extracted on Return on Assets (ROA) used to proxy financial performance. Data were also extracted on Dividend Payout Ratio (DPR); Dividend Yield (DY); Retention Ratio (RR) and Dividend Coverage Ratio (DCR) used to proxy dividend policy. An analysis of the data showed that they are stationary at level and that co-integration exists among them. Hausman test confirmed that fixed effect model was most appropriate. All the four variables used to proxy dividend policy jointly significantly affect performance though their individual results are mixed. DPR exerts a positive (coefficient = 1.886) and significant (p = 0.008) influence on performance. DY exerts a negative (coefficient = -0.002) and insignificant (p = 0.311) influence while RR exerts a negative (coefficient = -2.002) and significant influence (p = 0.004). DCR exerts an insignificant (p = 4.31) positive influence (coefficient = 0.17).The findings confirmed some existing works while they negate others. The study recommends that all the identified micro and macro-economic factors that affect dividend policy should be taken into consideration by management since the overall aim is to maximise shareholders’ wealth. | |
| dc.identifier.uri | https://repository.run.edu.ng/handle/123456789/3817 | |
| dc.language.iso | en | |
| dc.publisher | International Journal For Research In Business, Management And Accounting | |
| dc.title | Dividend Policy and Financial Performance (Return on Assets) of Listed Manufacturing Firms in Food and Beverage Industry in Nigeria | |
| dc.type | Article |