Modeling Correlation between Shareholders Dividends and Corporate Performance in Nigeria

Udeh, F. N., Abiahu, M. C. & Ogbekhilu, M.E. (2018). Proceedings of 4th Annual International Academic Conference of the Institute of Chartered Accountants of Nigeria.

25 Pages Posted: 29 Aug 2018 Last revised: 3 Sep 2018

See all articles by Dr. Francis Udeh

Dr. Francis Udeh

Nnamdi Azikiwe University - Department of Accountancy

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Marvel Ejefu Ogbekhilu

Nnamdi Azikiwe University - Department of Accountancy

Date Written: June 30, 2018

Abstract

This study examined the Modeling Correlation between Shareholders Dividend and Corporate Performance in Nigeria. The study employed the ex post-facto research design. To obtain answers on the research questions and to test the hypotheses formulated, data were obtained from annual reports of companies listed on the floor of the Nigeria Stock Exchange (NSE) that disclosed a comparative statement for the period of 2010 to 2016. The data collected were analyzed using descriptive statistics. Specifically, Simple Regression Analysis and paired sample t-test statistics were used to analyze the data. The results showed that there is no significant correlation between shareholders dividend payout and the explanatory variables in the model. This results taken as a whole indicates that banks pay dividend in Nigeria with the intention of reducing the agency conflict and maintaining firms’ reputation. The study recommended that since the payment of dividend indicates the firm having a good earnings capacity, management should maintain a steady increase in earnings, cash flow and dividend payment and establish a dividend policy that can be acceptable by various stakeholders.

Keywords: dividend payout, bird-in-the-hand theory, and corporate performance

JEL Classification: M40, M41

Suggested Citation

Udeh, Francis and Abiahu, Mary-Fidelis Chidoziem and Ogbekhilu, Marvel Ejefu, Modeling Correlation between Shareholders Dividends and Corporate Performance in Nigeria (June 30, 2018). Udeh, F. N., Abiahu, M. C. & Ogbekhilu, M.E. (2018). Proceedings of 4th Annual International Academic Conference of the Institute of Chartered Accountants of Nigeria., Available at SSRN: https://ssrn.com/abstract=3235417

Francis Udeh

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Marvel Ejefu Ogbekhilu

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

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