DETERMINANTS OF DIVIDEND POLICY AMONG NIGERIAN LISTED CONSUMER GOODS MANUFACTURING COMPANIES

Abstract

The study seeks to identify determinants of dividend policy among listed consumer goods manufacturing companies in Nigeria. Secondary (cross sectional and time series) data were collected from seven (7) consumer goods manufacturing companies randomly selected from twenty-seven (27) listedcompanies on the Nigeria Stock Exchange (NSE) as at 2016. Thecollected data were analyzed using Ordinary Least Square Methods.  The resultsof the study show that there is a negative significant relation between profitability and dividend policy (b₃= -0.43; t= -2.88 and p<0.05). Also, a positive significant relationship exists between liquidity and dividend (b₄ =0.17; t=1.04 and p<0.05).However, there is no significant relationship between firm size and dividend policy (b₁= 0.017; t= 0.10.7 and p> 0.05) and finally a negative insignificant relationship exists between financing policy and dividend policy (b₂= - 0.12; t= - 0.70 and p > 0.05). This implies that business size and financing policyare not determinants ofdividend policy in Nigerian listed consumer manufacturing companies. The study recommends, among other things, that operators in the manufacturing sector facing dividend policy decision should focus more on improving profitability and liquidity.