THE DETERMINANTS OF DIVIDEND PAYOUT IN THE NIGERIAN BANKING INDUSTRY

No Thumbnail Available
Date
2011-05
Authors
ABUBAKAR, NASIRUDEEN
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Dividend policy in the Nigerian Banking Industry differs as each bank decides on what, how and when to pay dividend to its shareholders. The purpose of the study is to ascertain the determinants of dividend payout in the Nigerian banking industry. The specific objectives were to determine the effect of profit after tax, shareholders fund, liquidity, risk, and financial leverage on the dividend payout in the Nigerian banking industry. The study used five sampled banks quoted on the banking subsector of the Nigerian Stock exchange as at December 2008. Secondary data were used for the research work and the data were obtained from Nigerian stock Exchange (NSE) Fact Books from 2001 to 2008 and the financial Statement of the sampled banks for all the years covered by the study. The variables used were the dividend payout, profit after tax, shareholders fund, liquidity represented by cash and bank balances with central bank of Nigeria, risk represented by loan loss provision and financial leverage represented by long term borrowing. The analytical technique used was the multiple regression analysis. The findings reveal that profit after tax, shareholders fund, liquidity, risk and financial leverage are major determinants of dividend payout of banks in Nigeria, while liquidity and risk are the most critical factors determining dividend payout of banks in Nigeria. Nigerian Banks should improve their liquidity position byretaining more earnings and reducing loan loss
Description
A THESIS SUBMITTED TO THE POST-GRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF M.Sc. ACCOUNTING AND FINANCE
Keywords
DETERMINANTS, DIVIDEND, PAYOUT, NIGERIAN, BANKING, INDUSTRY
Citation
Collections