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Ownership Concentration and Dividend Payout of Industrial Goods Companies

TONYE, Ogiriki, BAGHEBO Joseph

Abstract

The study investigated the effect of ownership concentration on dividend distributions within Nigeria's industrial goods sector. Employing an ex post facto research design, the analysis encompassed all nine companies listed on the Nigerian Exchange (NGX) from 2020 to 2024. Secondary data extracted from audited financial reports were analyzed using descriptive statistics and a panel least squares regression model to determine the nature and significance of the relationship between the variables. The empirical findings revealed a statistically significant positive effect of ownership concentration on dividend payout, with a coefficient of 25,977.61 (p- value = 0.0408). This indicates that a unit increase in ownership concentration is associated with a rise in dividend payout. The study concludes that major shareholders influence higher payouts, likely to mitigate agency conflicts, but firm-specific financial factors play a more substantial role in dividend decisions.

Keywords

Ownership ConcentrationDividend PayoutCorporate Governance

References

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