International Journal of Social Sciences and Management Review

DIVIDEND POLICY AND VALUE OF THE FIRM

Authors: Dr Jude Idemudia Okoh, Dr Isibor Areghan, Prof. Babajide Abiola, Akinrinola Olalekan, Dr Ojomolade Dele, Ogunwale Olurotimi & Odetola Folakemi Bolanle

ABSTRACT

This study examine the impact of dividend policy on value of manufacturing firms in Nigeria. The study used statistical records for years 2014-2023 as secondary data. Panel data with the use of regression analysis was used to estimate the data collected during the period of this study. The variables used include enterprise value, dividend cover, and dividend yield and dividend payout ratio. From the analysis of the study, it is observed that dividend cover had insignificant effect on enterprise value since the p-value of 0.4151 was greater than 0.05, dividend yield had insignificant effect (p-value = 0.2112) on enterprise value and dividend payout had insignificant effect (p-value=0.9412) on enterprise value. Based on the above findings, the study recommended that Companies have to adopt the form of dividend payment that is favourable to the growth of the organization since the form of the dividend payment is directly proportional to the growth of firms in Nigeria.

Keywords: Dividend Policy, Dividend Cover, Enterprise Value, Dividend Payout

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