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Articles

Vol. 13 No. 1 (2024): ESUT Journal of Accountancy (EJA)

Corporate Dividend Policy and Firm Value in Nigeria

Submitted
April 21, 2024
Published
2024-04-21

Abstract

Research purpose: The objective of this study was to examine the effect of corporate dividend policy on firm  value of major cement manufacturing companies in Nigeria, from 2019-2022. 

Methodology: The data was obtained from annual reports of the companies and were analyzed by the use of the Generalized  Method of Moment Model (GMM). Market Price per Share was used to measure the firm  value while corporate dividend policy was proxy by Dividend per Share. 

Findings: The result of the  analyses showed that corporate dividend policy are fundamental to the firm's value. The test  further reveals that there is a significant relationship between effective corporate dividend  policy and firm value. 

Conclusion: The study concluded that corporate dividend policy affects firm value  positively. 

Recommendations: Finally, the study recommended that companies' top management need to design  efficient corporate dividend policy by balancing the need and classes of individual  shareholders so as to maximize firm value. 

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