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Articles

Vol. 6 No. 1 (2024): Research Journal of Financial Sustainability Reporting

Corporate Dividend Policy and Firm Value in Nigeria

Submitted
July 20, 2024
Published
2024-07-20

Abstract

Research Purpose: This study aims to examine the impact of corporate dividend policy on the firm value of major cement manufacturing companies in Nigeria from 2019 to 2022.

Methodology: Data were obtained from the annual reports of the companies and analysed using the Generalised Method of Moment Model (GMM). Firm value was measured by Market Price per Share (MPS), while corporate dividend policy was proxied by Dividend per Share (DPS).

Findings: The analysis indicates that corporate dividend policy is fundamental to firm value. The test results reveal a significant relationship between an effective corporate dividend policy and firm value. The study concludes that corporate dividend policy positively affects firm value.

Conclusion: The study confirms that corporate dividend policy significantly influences the firm value of major cement manufacturing companies in Nigeria.

Recommendations: It is recommended that top management of companies design efficient corporate dividend policies that balance the needs and classes of individual shareholders to maximise firm value.

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