Modelling Correlation between Shareholders Dividends and Corporate Performance in Nigeria

Abiahu, M.F.C., Udeh, F.N. & Ogbekhilu, M.E. (2018). Modelling correlation between shareholders dividends and corporate performance in Nigeria. Journal of Modern Accounting and Auditing, October 2018, Vol. 14, No. 10, 570-581 doi: 10.17265/1548-6583/2018.10.004

12 Pages Posted: 4 Nov 2019

See all articles by Mary-Fidelis Chidoziem Abiahu

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Dr. Francis Udeh

Nnamdi Azikiwe University - Department of Accountancy

Marvel Ejefu Ogbekhilu

Nnamdi Azikiwe University - Department of Accountancy

Date Written: October 1, 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. These results taken as a whole indicate 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, corporate performance

JEL Classification: M40

Suggested Citation

Abiahu, Mary-Fidelis Chidoziem and Udeh, Francis and Ogbekhilu, Marvel Ejefu, Modelling Correlation between Shareholders Dividends and Corporate Performance in Nigeria (October 1, 2018). Abiahu, M.F.C., Udeh, F.N. & Ogbekhilu, M.E. (2018). Modelling correlation between shareholders dividends and corporate performance in Nigeria. Journal of Modern Accounting and Auditing, October 2018, Vol. 14, No. 10, 570-581 doi: 10.17265/1548-6583/2018.10.004, Available at SSRN: https://ssrn.com/abstract=3307010

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Francis Udeh

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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