Effect of Taxation on Dividend Policy of Quoted Deposit Money Banks in Nigeria (2006-2015)

Abiahu, M.C & Amahalu, N.N. (2017). Effect of taxation on dividend policy of quoted deposit money banks in Nigeria (2006-2015). EPH-International Journal of Business & Management Science, 2(3), 1-30.

30 Pages Posted: 19 Apr 2017

See all articles by Mary-Fidelis Chidoziem Abiahu

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Nestor Amahalu

Nnamdi Azikiwe University

Multiple version iconThere are 3 versions of this paper

Date Written: March 25, 2017

Abstract

The study considers the effect of taxation on the dividend policy of banks in Nigeria. The study was set out to determine the relationship between dividend and taxes and to find out whether taxes affect the dividends of the quoted deposit money banks in the Nigerian Stock Exchange from 2006 to 2015. Three specific objectives were derived. In pursuance of the objectives of this study, ex-post facto research design was adopted. The study made use of secondary data obtained from the Nigeria Stock Exchange (NSE) publications, fact books, annual reports and account of the selected quoted banks. The relevant data were subjected to statistical analysis using Pearson coefficient of correlation, and Ordinary Least Square (OLS) regression. The result of this study reveals that there is a negative significant relationship between tax and dividend policy. More so, that tax has statistically significant effect on dividend policy of - banks. This study recommends amongst others, that management of banks should design a dividend policy that will better the lots of shareholders and maximize the value of the bank.

Keywords: Taxation, Dividend Policy, Investment Decisions

JEL Classification: G21, G31, H20, M40, M41

Suggested Citation

Abiahu, Mary-Fidelis Chidoziem and Amahalu, Nestor, Effect of Taxation on Dividend Policy of Quoted Deposit Money Banks in Nigeria (2006-2015) (March 25, 2017). Abiahu, M.C & Amahalu, N.N. (2017). Effect of taxation on dividend policy of quoted deposit money banks in Nigeria (2006-2015). EPH-International Journal of Business & Management Science, 2(3), 1-30., Available at SSRN: https://ssrn.com/abstract=2953018

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Nestor Amahalu

Nnamdi Azikiwe University ( email )

P.M.B 5025, Awka
PMB 5025
Awka, DE Anambra State P.M.B. 5025
Nigeria

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