Impact of Dividend Policy on the Value of Consumer Goods Firms in Nigeria

ABSTRACT

The study investigates “Impact of dividend policy on value of consumer goods firms in Nigeria. Thirteen listed consumer goods firms were used as sample of the study. Ex-post facto research design was employed as well as multiple regression data analysis. The variables used for the studies are share price as the dependent variable, retention ratio and dividend payout ratio as the independent variable. The hypothesis was tested using t-statistics. Findings reveal that there is no significant relationship between dividend payout and share price of listed consumer goods firms in Nigeria. Also, findings reveals that there is no significant relationship between retention ratio and share price of listed consumer goods firms in Nigeria. It is therefore recommended that management of firms in Nigeria should base their dividend policy decisions on the needs and interest of their shareholders amidst maximizing returns many shareholders, prefers dividend policies that promote their interest more than the long run business interest.