Volume( 13) - Issue( 1) 2022 pp 98-105 DOI: -

IMPACT OF FINANCIAL PERFORMANCE ON DIVIDEND PAYOUT: EVIDENCE FROM LISTED INDUSTRIAL GOODS IN NIGERIA

Title

IMPACT OF FINANCIAL PERFORMANCE ON DIVIDEND PAYOUT: EVIDENCE FROM LISTED INDUSTRIAL GOODS IN NIGERIA

Abstract

The industrial goods in Nigeria have experienced the problem as to which portion to give out as dividends and which to retain. This debate has affected their financial performance over time. Therefore, the objective of this study is to investigate the determinants of financial performance on dividend payout of 3 industrial goods on Nigeria Stock Exchange from 31st December, 2016 to 31st December, 2020. The study employed secondary data from the annual audited financial statements and reports of three listed industrial goods in Nigeria. Financial performance is measured by return on asset, return on equity and liquidity while dividend payout is measured as the total dividend payout by the industry at the time of this study. The study uses panel data which consists of time series and cross-sectional data. The data were analyzed using descriptive statistics and regression. From the regression analysis, liquidity has positive relationship with dividend payout. Based on other variables; return on assets and return on equity have a weaker relationship with dividend payout .Therefore, the study recommends the managers of these industries to effectively utilize the industries resources by investing the shareholder’s money into profitable ventures and to ensure better decisions on the issue of dividend payout.

Keywords

Dividend payout, Return on assets, Return on equity, Liquidity