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BOARD INDEPENDENCE, EXPERTISE AND DIVIDEND PAYOUT IN NIGERIAN CONSUMER AND INDUSTRIAL FIRMS: THE MODERATING ROLE OF BOARD OWNERSHIP
GRJAFVol 6, Issue 1Volume 6

BOARD INDEPENDENCE, EXPERTISE AND DIVIDEND PAYOUT IN NIGERIAN CONSUMER AND INDUSTRIAL FIRMS: THE MODERATING ROLE OF BOARD OWNERSHIP

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BOARD INDEPENDENCE, EXPERTISE AND DIVIDEND PAYOUT IN NIGERIAN CONSUMER AND INDUSTRIAL FIRMS_ THE MODERATING ROLE OF BOARD OWNERSHIP GRJAF AMSSRNDownload

Authors

MADUKA, Ifeoma Kate Nonyelum1; CHECHET, Luka Ishaya PhD2; AGBI, Samuel Eniola PhD3 & YAHAYA, Adabenege Onipe PhD4 

1Department of Accountancy, College of Business and Management Studies, CBMS, Kaduna Federal Polytechnic, Kaduna. Tel: +2348035293335 

Email: [email protected].

2,3,4Department of Accounting, Faculty of Management Sciences, Nigeria Defense Academy (NDA), Kaduna

Email: [email protected]2; [email protected]3[email protected]4

Abstract

Regular dividends and pay-out are better signals to equity holders. Consequently, this study examined the moderating effect of board ownership on board independence, financial expertise and dividend pay-out of listed consumer and industrial goods firms in Nigeria. The research design adopted was expost facto research design. The population of the study was 34 listed consumer and industrial firms with sample size of 14 using both filtering techniques and purposive sampling. The data collected was analysed using descriptive techniques, panel multiple regression and binary logistic regression models. The findings revealed that board independence has direct positive and significant effect on dividend pay-out of listed firms. In addition, the moderated and direct logistic regression also revealed that board independence and board financial expertise indicated a positive and significant effect on dividend pay-out. Likewise, results revealed a positive and significant moderating effect of board ownership on board independence, expertise on dividend pay-out. of listed consumer and industrial firms in Nigeria. Consistent with the signalling and upper echelon theories, this study found that this result is more pronounced in companies with many years of listing on the Nigerian exchange. This study concluded a significant and positive moderating effect of board ownership on independence and financial expertise of listed consumer goods and an efficient limit of five percent shareholding enhance dividend pay-out. It was therefore recommended that firms through their managers should promote increased board ownership, independence and expertise to enhance higher dividend pay-outs.

Keyword: Board Independence, Board Ownership, Dividend Payout, Financial Expertise, Nigeria.

References

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See also

Fayyaz, U. E. R., Vendith, M., & Jalal, R. N. U. D. (2023). Dividend policy under the influence of corporate governance quality: An empirical analysis from Asian emerging markets. Global Business and Economics Review, 28(1), 22-38.

Hamdan, A. M. (2018). Dividend policy, agency costs and board independence. International Journal of Critical Accounting, 10(1), 42-58.

Ilu, S. A. (2021). Moderating effect of financial performance on the relationship between board characteristics and dividend policy of listed non-financial firms in Nigeria. Unpublished PhD Thesis, Bayero University (BUK), Kano.

Khan, A. U. (2021). Impact of board traits on organisations dividend pay-out: Evidence from Pakistan. Journal of Financial Studies, 2(1), 21-36.

Mansourinia, E., Emangholipour, M., Rekabdar-Kolaei, E. A., & Hozoori, M. (2013). The effect of board size, board independence and CEO duality on dividend policy of companies: Evidence from Tehran stock exchange. International Journal of Economics, Management and Social Sciences, 2(6), 237-241.

Nwarogu, I. A., & Onodi, B. E. (2017). Effect of Corporate Governance on dividend policy of listed firms in Nigeria. ESUT Journal of Accountancy, 8(1), 100-108.

Okafor, I. G., Ugwuegbe, S. U., & Ezeaku, H. C. (2016). The effect of board interest on the dividend policy of Nigerian manufacturing sector. International Journal of Academic Research in Business and Social Sciences, 6(8), 100-115.

Onyekanmi, O. (2022, May 15). Why companies are not paying dividends. The Guardian.

Sani, A. A., & Musa, M. A. (2017). Corporate board attributes and dividend payout policy of listed deposit money banks in Nigeria. International Journal of Research in IT, Management*