IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 6 2018

---

Effect of Dividend Payout on Market Value of Selected Brewery Firms in Nigeria

Mbah, Alice Nkechi, & Anichebe, Alphonsus Sunday

---

Abstract

The objective of this study is to evaluate the effect of dividend payout on the market value of selected brewery firms in Nigeria. The ex post facto research design was adopted. Annual time series Secondary time series data is obtained from the annual reports of three selected companies for the period 2013-2017. Panel data and regression analysis were employed. The Tobin’s Q measure of market value is specified in the model as a function of dividend payout ratio. The panel regression result shows that dividend payout ratio is positively related to firms’ market value, but it is not statistically significant in determining firms’ market value. It is therefore recommended that management of these firms should be encouraged to pay dividend annually so as to increase the market value of their firms

keywords:

dividend payout, market value, shareholders, Tobins Q

---

References:

Akinsulire, O. (2005). Financial Management, 3rd Ed. Lagos, El-Toda Ventures.

Akinsulire, O. (2014). Financial Management, 8rd Ed. Lagos, El-Toda Ventures

Amidu, M. (2007). How Does Dividend Policy affect Performance of the Firm on Ghana
Stock Exchange? Investment Management and Financial Innovations Journal, 4(2).

Enekwe, C. I., Nweze, A. U. and Agu, C. I. (2015). The Effect of Dividend Payout on
Performance Evaluation: Evidence of Quoted Cement Companies in Nigeria.
European Journal of Accounting, Auditing and Finance Research 3(11), 40-59

Gordon, M. J. (1959). Dividends, Earnings, and Stock Prices. The Review of Economics and
Statistics. 41, 99-105.

Inyiama, E. C., Okwo, M. I. & Inyiama, O. I. (2015).Dividend payout policy determinants of
selected listed brewery firms in Nigeria: a meta-analysis (2000-2013), European
Journal of Business, Economics and Accountancy, 3(3)101-118.

Kajola, S.O., Adewunmi, A.A., & Oworu, O.O. (2015). Dividend pay-out policy and firm
financial performance: Evidence from listed Nigerian non-financial firms.
International Journal of Economics, Commerce and Management, 3(4)1-13

Miller, M. and Modigliani, F. (1961). Dividend Policy, Growth and the Valuation of Shares.
Journal of Business. 34(6), 411-433.

Musa, I. F. (2015). The dividend policy of firms quoted on the Nigerian stock exchange: An
empirical analysis, African Journal of Business Management, Vol.3 (10), pp. 555-566,

Nwaobia, A. O., Alu, C. N. A. & Olurin, O. T. (2017). Dividend Payout Ratio and Share
Price: Evidence from Quoted Manufacturing Companies in Nigeria, IOSR Journal of
Business and Management, 19(10) 30-43

Okoro, O. O., Ezeabasili, V. & Alajekwu, U. B. (2018). Analysis of the determinants of
dividend payout of consumer goods in Nigeria. ICCS Economic Series, I(8)141-165

Oladele, K. O. (2013). The Determinants of Value Creation in the Nigerian Banking
Industry: Panel Evidence. International Journal of Business and Social Science,
4(3), 89 – 101

Olaoye, F. O., & Owoniya, B. O. (2017). Dividend Policy and Share Price Fluctuations of
Sampled Quoted Nigerian Companies. Archives of Business Research, 5(11), 94-100

Parkinson, J. M. & Waweru, N. M. (2010). Paying Dividends by Kenyan Companies.
Savings and Development, 1, 35-51

Taslim M. W. (2013). Effect of Enterprise Risk Management Implementation on Firm
Value of Companies Listed at Nairobi Securities Exchange. International Journal
of Business & Law Research, 1(1), 65-76

Walter, J. E. (1963). Dividend Policy: It?s Influence on the Value of the Enterprise. The
Journal of Finance 18 (2)280–291.

Williams, J. B. (1938). The Theory of Investment Value. Harvard University Press,
Cambridge, MA.

DOWNLOAD PDF

---

Back