Dividend Policy of Banks: The Nigerian Perspective

NWUDE, E. Chuke and Agbo, Elias Igwebuike (2017) Dividend Policy of Banks: The Nigerian Perspective. International Journal of Economic Perspectives, 11 (4). pp. 330-351.

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The objective of this study is to determine the nature, direction as well as the significance of the relationship of current dividend payout and some explanatory variables such as earnings per share, previous year dividend payout, capital adequacy ratio, cash flow per share, size, and inflation rate in the Nigerian commercial banks. The stationarity of the time series data is tested for and confirmed using the Augmented Dickey Fuller (ADF) procedure. Some of the study variables are integrated of the same order I (1) signaling some cointegration issues. The results of the study indicate that previous year dividend, capital ratio and size of a bank are important factors that positively impact its current year dividend payout. On the other hand, cash flow, earnings per share and inflation are negatively associated with dividend payouts of a bank.

Item Type: Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 14 May 2019 10:35
Last Modified: 14 May 2019 10:35
URI: http://eprints.gouni.edu.ng/id/eprint/1526

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