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Dividend payment behaviour and its determinants: The Nigerian evidence


Abdulkadir, Rihanat Idowu and Abdullah, Nur Adiana Hiau and Wong, Woei Chyuan (2014) Dividend payment behaviour and its determinants: The Nigerian evidence. In: 6th Malaysian Finance Association Conference (MFA2014), 4 - 6 June 2014, Sasana Kijang Central Bank of Malaysia, Kuala Lumpur. (Unpublished)

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Abstract

This paper examines the disappearing dividend phenomenon within the Nigerian context by observing dividend patterns between year 2003 to 2012.We investigate possible explanation for the pattern observed by examining factors that determine a firm's decision to pay or not to pay dividends.Findings indicate a decline in the number of firms paying dividends and a downward trend in nominal dividends paid in latter years. Fixed effect logistic estimates indicate that firms with higher level of foreign ownership are less likely to pay dividends. Our findings therefore provide support for the tax-induced clientele theory of dividends.The study also provide support for profitability as a characteristic of a dividend payer and support for dividend smoothing hypothesis. However, we did not find evidence in support of the catering theory and the life cycle theory of dividend.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Jointly Organised By : Universiti Malaya, Malaysian Finance Association Conference & AJBA
Uncontrolled Keywords: dividend payout, foreign ownership, clientele effect.
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Depositing User: Prof. Dr. Nur Adiana Hiau Abdullah
Date Deposited: 22 Jul 2014 02:13
Last Modified: 12 Apr 2016 06:44
URI: http://repo.uum.edu.my/id/eprint/11574

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