DIVIDEND POLICY AND SHAREHOLDERS WEALTH OF NIGERIA LISTED INDUSTRIAL GOODS FIRMS: MODERATING EFFECT OF FIRM SIZE
Abstract
This study examined the moderating effect of firm size on the nexus between dividend policy and shareholders wealth of quoted Nigerian industrial firms. The study's timeline spans from 2012 until 2023. Using census sampling approach, all the 13 quoted Nigerian industrial good firms were chosen as the sample size from the population. Dividend policy (DVP) was proxied by dividend pay-out (DPR), dividend per share (DPS) and dividend yield (DYD). Shareholders wealth was proxy by market share price (MSHP). Panel regression model was utilized as the estimation parameters. The outcomes of the study demonstrated that DVP has a notable favourably effects on shareholders wealth at the 5% level (t= 2.91, 2.57, 2.06) and (p= <0.05). Whereas, FSZ was found to have an adverse favourable impact on the nexus between DVP and MSHP evidenced with t-stats and p-vals. of (t= -2.63, -2.58, -2.05) and (p= <0.05). The result implies that higher DVP will boost shareholders wealth while, as firm grow larger, its impact on MSHP weakens or reduces the strength of a favourable connection between DVP and shareholders wealth. The conclusion drawn from this study is that firm size has an adverse moderating effect on the nexus between dividend policy and shareholders wealth. Based on this result the following were recommended; large firms and smaller firms should adopt flexible dividend policies that balance shareholder returns with growth opportunities, avoiding rigid high payout policies that may hinder reinvestment. Regulators should ensure fair dividend policies across firms of different sizes to prevent market inefficiencies.
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