Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies

Salawu, Rafiu Oyesola; Asaolu, Taiwo Olufemi; Yinusa, Dauda Olalekan

doi:10.5539/ijef.v4n4p175

Cited by 7 publications

(6 citation statements)

References 10 publications

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“…The results support Bricley's research; Myers & Majluf; Bajaj and Vijh that dividends can improve shareholder wealth [10,18,26]. The results of this study support the research of Ashamu et al and Salawu et al which proves that dividend policy has a positive and significant effect on firm value [19,20]. The results of hypothesis testing in this study indicate that changes in dividend payout ratio increased have a significant influence on stock price changes.…”

Section: Discussionsupporting

confidence: 86%

“…Gordon's research; Bricley; Bajaj and Vijh resulted that dividends could improve stockholder wealth [16][17][18]. The results of Ashamu et al and Salawu et al can prove that dividend policy has a positive and significant effect on company value [19,20]. Anton proves that company value is positively influenced by dividend policy, after controlling for the variables of debt, company size, liquidity, and profitability [21].…”

Section: Introductionmentioning

confidence: 99%

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Testing of Dividend Signaling Theory

Purnamasari¹,

Heraenitanuatmodjo²

2019

Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

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This research aims to test whether dividend policy gives positive signal or negative signal to change of company value. The research was conducted at basic industry and chemical company which listed in Indonesia Stoc Exchange period 2006-2015. Variable used in this research is dividend policy in proxy with DPR, and Value Company which in proxy with Tobin's Q. The research method used descriptive and verification methods. Sampling using purposive sampling. The sample size is 10 companies for 10 years with 100 observation data. Statistical analysis used linear regression analysis of panel data. Based on the test results obtained that the dividend policy has a positive effect on the value of the company. The dividend policy provides positive information to investors. Thus the results of the study prove that the dividend policy in the company's basic industrial sectors and chemistry in accordance with dividend signaling theory.

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Section: Discussionsupporting

confidence: 86%

Section: Introductionmentioning

confidence: 99%

Testing of Dividend Signaling Theory

Purnamasari¹,

Heraenitanuatmodjo²

2019

Proceedings of the 1st International Conference on Economics, Business, Entrepreneurship, and Finance (ICEBEF 2018)

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“…Furthermore Salawu (2012) states that total sales affect financial performance. The higher sales will increase the company's chances of maximizing profits, if this can be maintained well by the company then profit growth will be stable.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

“…More detailed, the greater the total assets, the more capital invested, the more sales, the more money turnover and the greater tangibility of assets, the greater the company is known in the community (Sudarmadji and Sularto, 2009). In this study Firm Size is measured using Total Assets / Log of total assets (Alipour et al 2015, Najjar, 2011and Dogan 2013, Total Sales / log of total sales (Salawu, 2012) and Tangibility Assets Ratio (Rajan and Zingales, 1995, Najjar and Petrov, 2011, Salawu 2012.…”

Section: Theoretical Framework and Hypothesismentioning

confidence: 99%

The Effect of Corporate Governance, Firm Size and Capital Structure on Financial Performance: A Study of State-Owned Enterprises Listed in the Indonesia Stock Exchange During Period of 2013-2016

Zuchruf¹,

Suhadak²,

Mangesti³

et al. 2019

RJOAS

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Corporate Governance is a system, process and set of regulations that are built to direct and control the company so as to create a good, fair and transparent relationship between stakeholders in the company. The implementation of consistent corporate governance will improve the quality of the company's financial statements. Management will tend not to manipulate financial statements, because there is a need to comply with various applicable accounting rules and principles and transparent presentation of information. Zarkasyi (2008) states that Corporate Governance is a means to make companies better, among others by inhibiting practices of corruption, collusion, nepotism, increasing budget discipline, utilizing supervision, and encouraging efficient management of the company.Companies that implement Corporate Governance have good financial performance, this is because the company has implemented the principles of Corporate Governance namely transparency, accountability, fairness and responsibility. These principles make shareholders feel the positive impact of the trust that arises. This confidence arises due to the optimism of the shareholders towards the company so that the goals expected by the shareholders occur. Good management makes management work optimally so that optimal financial performance is achieved Several empirical studies that have been conducted related to the effect of corporate governance with the company's financial performance as conducted by Nur'ainy et.al (2013) show that the application of corporate governance can directly influence company performance as measured by Economic Value Added, and also shows the effect indirectly through company size. Furthermore Fidanoski et al. (2013) in his study showed that only board size is positively related to bank profitability as measured by Return On Assets. Furthermore, research shows a negative relationship between board independence and Return on Assets and Return on Equity Signaling Theory states how a company should give signals to users of financial and non-financial statements. Through this signal information can be found about the company's current and future conditions. Signals can be a comparison between the pros and cons of one company with another company. Signaling Theory also explains the effect of company size on financial performance. Large companies tend to distribute high dividends to maintain reputation among investors. According to Myers and Majluf (1977), companies would prefer to use debt to suppress the information asymmetry that can occur. In addition, according to

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“…Empirically, many scholars have examined the impact of strategy implementation and performance (e.g. Wanjiru, 2016;Kumar, 2015;Aremu, Oyinloye, 2014;Ibrahim et al, 2012); strategy implementation drivers such as human resource and performance (Shigang, Guozhi, 2016;Sorooshian et al, 2010); financial capability and performance (Shigang, Guozhi, 2016); organisational structure and Small and Medium Entreprises (SMEs) performance (Okeke et al, 2016;Nwosu, 2015); organisational structure and market share (Akinyele, 2011); HRM policies and variables like commitment, productivity, profitability, and quality, among others (Demo et al, 2012;Kim, Lee, 2012); financial policy and performance (Salawu et al, 2012;Akhigbe, Madura, 2008;Bokpin, Abor, 2009). Previous studies found a connection between employee commitment to strategy implementation and per-formance (Dooley et al, 2000;Ramaseshan et al, 2013;Kohtamäki et al, 2012;Kuye, Sulaimon, 2011).…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Employee Commitment to Strategy Implementation and Employee Satisfaction

Nwachukwu¹,

Olatunji

2018

Trends Economics and Management

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Purpose of the article: The mobile telecommunication sector in Nigeria has attracted highest foreign direct investment, consistently created jobs more than any sector in the economy. Encouraging employees commitment to strategy implementation can have a positive impact on employee satisfaction level. Methodology/methods: This study used a descriptive quantitative research approach. The survey method was used to collect data from four mobile telecommunication firms in Nigeria. We administered 120 questionnaires to employees of the sample firms, 105 questionnaires were returned and analysed using the regression analysis, Pearson correlation and ANOVA techniques. Scientific aim: This study examines the relationship between employee commitment to strategy implementation and employee satisfaction in mobile telecommunication firms in Nigeria. Findings: The results show that employee commitment to strategy implementation has a positive and significant relationship with employee satisfaction. Employee commitment to strategy implementation is correlated with employee satisfaction, the more committed employees are to their firms strategy implementation, the higher their level of satisfaction with their firms. Thus, employee commitment to strategy implementation have positive impact on employee satisfaction. Our formulated hypothesis is supported. Conclusions: This study provides a better understanding on the importance of employee commitment to strategy implementation in improving the level of employee satisfaction. This study suggests that employee commitment to strategy implementation is an important factor of employee satisfaction. Thus, policymakers, business executives, and HR managers must create an organisational culture and climate that support employee commitment to strategy implementation to improve employee satisfaction. The authors recommended that firms should elicit the commitment of their employees at the strategy implementation stage as this will boost their level of satisfaction. A satisfied employee will be more productive and this will in turn improve the firm's performance.

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Financial Policy and Corporate Performance: An Empirical Analysis of Nigerian Listed Companies

Cited by 7 publications

References 10 publications

Testing of Dividend Signaling Theory

Testing of Dividend Signaling Theory

The Effect of Corporate Governance, Firm Size and Capital Structure on Financial Performance: A Study of State-Owned Enterprises Listed in the Indonesia Stock Exchange During Period of 2013-2016

The Relationship between Employee Commitment to Strategy Implementation and Employee Satisfaction

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