NIGERIAN PERSPECTIVE OF DIVIDEND PAYOUT POLICY OF BANKS

Agbo, Elias Igwebuike (2020) NIGERIAN PERSPECTIVE OF DIVIDEND PAYOUT POLICY OF BANKS. International Journal in Management and Social Science, 8 (11). pp. 32-59. ISSN 2321-1784

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Abstract

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 cross- sectional and time series data was tested for and confirmed, using the Augmented Dickey Fuller (ADF) procedure. Some of the study variables were integrated of the same order (1). This phenomenon signaled cointegration issues and necessitated a cointegration test. 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 payout policy of commercial banks.

Item Type: Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: Faculty of Management and Social Sciences
Depositing User: mrs chioma hannah
Date Deposited: 04 Oct 2021 10:24
Last Modified: 04 Oct 2021 10:24
URI: http://eprints.gouni.edu.ng/id/eprint/3195

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