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