Shareholders’ Preference and Dividend Policy: An Empirical Analysis of Listed Industrial Goods Companies in Nigeria

Salawudeen, Aishat; Aminu, Isa Muhammad; Salaudeen, Moshoud Yinka

doi:10.7176/rjfa/11-24-08

RJFA 2020

DOI: 10.7176/rjfa/11-24-08

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Shareholders’ Preference and Dividend Policy: An Empirical Analysis of Listed Industrial Goods Companies in Nigeria

Aishat Salawudeen¹,

Isa Muhammad Aminu²,

Moshoud Yinka Salaudeen³

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Cited by 2 publications

References 24 publications

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Minority shareholder protection and dividend policy: Evidence from the material industry

Phuong

Hoang

Tuan

et al. 2023

JGR

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This study investigates the impact of minority shareholder protection on corporate dividend policy. On one hand, strong minority shareholder protection can be associated with a reduction in dividend payment because shareholders want to receive more dividends to mitigate agency costs. On the other hand, weak minority shareholder protection can lead to an increase in dividend payment since shareholders, in order to protect themselves, may require the company to pay more dividends to compensate for weak minority shareholder protection. Our sample consists of 101 Vietnamese listed firms in the material industry during the period from 2015 to 2021. Employing a pooled ordinary least squares (OLS) model, we find a negative impact of minority shareholder protection on corporate dividend payment. To deal with the endogeneity problem, we apply a system generalized method of moments (GMM) method. The main result estimated from this method is qualitatively unchanged. The finding of this paper suggests that the manager of a company should enhance the corporate governance of the company to protect the minority shareholders.

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Minority shareholder protection and dividend policy: Evidence from the material industry

Phuong

Hoang

Tuan

et al. 2023

JGR

View full text Add to dashboard Cite

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Shareholders’ Dividend Preference in the Nigerian Capital Market

Salawudeen

Isa

Dandago

2022

International Journal of Management Studies

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Aside from the fact that no legislation requires, as we believe, that management has a distinct fiduciary commitment to shareholders, no act prioritizes the shareholder. The management’s fiduciary duty is solely to the corporation. Investors, on the other hand, have a votive claim to the corporation’s residual value once all other obligations have been met. The aim of this survey was to empirically investigate the dividend preference of shareholders in the Nigerian capital market with specific reference to listed manufacturing firms in Nigeria. The study used the design of an investigation using questionnaires and interviews. The target population was 500 shareholders selected based on stratified random sampling out of 682,100 shareholders that is 0.07 percent of the total population. The snowball sampling technique was used to recruit potential respondents from among the shareholders’ acquaintances. The study used a final sample size of 300 respondents from the shareholders. The validity and reliability of the instrument were tested using factor analysis and a Cronbach’s alpha coefficient of 0.72 was obtained. The mean ranking showed that shareholders do have significant dividend preferences which favor cash dividends and support a bird in the hand is worth two in the bush explanation. Given that in practice, shareholders prefer companies with stable and predictable dividend payments, this study could be used to correct and predict the direction of a company’s dividend payments and that the stability of dividend payments change over time.

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Shareholders’ Preference and Dividend Policy: An Empirical Analysis of Listed Industrial Goods Companies in Nigeria

Cited by 2 publications

References 24 publications

Minority shareholder protection and dividend policy: Evidence from the material industry

Minority shareholder protection and dividend policy: Evidence from the material industry

Shareholders’ Dividend Preference in the Nigerian Capital Market

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