Impact of Dividend Policy on Corporate Performance of Consumer Goods Manufacturing Firms in Nigeria
Abstract
This study examines the impact of dividend policy on the corporate performance of consumer goods manufacturing firms in Nigeria, with a focus on Dividend per Share (DPS) and Dividend Payout Ratio (DPR) as independent variables, firm size as a control variable, and Return on Assets (ROA) as the dependent variable. Employing an ex-post facto research design, the study utilized secondary data from the 2023 audited financial statements of five consumer goods companies listed on the Nigerian Exchange Group. Analysis was conducted using E-views 10.0. Findings reveal that DPS has a significant positive effect on corporate performance, suggesting that increased DPS is associated with improved corporate performance, DPR was found to have no statistically significant impact on corporate performance, the study concludes that dividend policy, particularly DPS, plays an important role in enhancing corporate performance in Nigeria's consumer goods sector, it recommend that DPS strategies to balance shareholder returns with sustainable profit levels and adopting a flexible approach to DPR based on firm-specific financial conditions.
Keywords
Dividend policydividend per sharesDividend per ratio and corporate performance
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