Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis

Henry Waleru Akani; Yellowe Sweneme

doi:doi:10.11648/j.jfa.20160404.17

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Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis

Henry Waleru Akani, Yellowe Sweneme

Published in Journal of Finance and Accounting (Volume 4, Issue 4)

Received: 23 May 2016 Accepted: 12 June 2016 Published: 6 July 2016

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Abstract

This paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in Nigeria from 1981 – 2014. The objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in Nigeria. Time series data were computed from financial statement of the selected quoted manufacturing firms and stock exchange factbook. Return on Investment (ROI) and Net Profit Margin (NPM) were modeled as our dependent variables while Dividend Payout Ratio (DPR), Retention Ratio (RR), Dividend Yield (DY) and Earnings per Share (EPS) were proxied as our independent variables. Multiple regressions with the aid of Statistical Package for Social Sciences Research (SPSS) were used as data analyses techniques. Multi co-linearity, co-linearity, Durbin Watson, F-statistics and regression coefficient were used to determine the dynamic relationship between the variables. Findings revealed that all the independent variables have positive relationship with the dependent variables except dividend yield. The study recommends that operational efficiency of Nigerian financial market should be deepened and management should strengthen its effort for effective dividend policy that will increase the profitability of the quoted manufacturing firms Nigeria.

Published in	Journal of Finance and Accounting (Volume 4, Issue 4)
DOI	10.11648/j.jfa.20160404.17
Page(s)	212-224
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Dividend Policy, Profitability, Quoted Manufacturing Firms, Return on Investment and Net Profit Margin

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Henry Waleru Akani, Yellowe Sweneme. (2016). Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. Journal of Finance and Accounting, 4(4), 212-224. https://doi.org/10.11648/j.jfa.20160404.17

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Henry Waleru Akani; Yellowe Sweneme. Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. J. Finance Account. 2016, 4(4), 212-224. doi: 10.11648/j.jfa.20160404.17

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AMA Style

Henry Waleru Akani, Yellowe Sweneme. Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. J Finance Account. 2016;4(4):212-224. doi: 10.11648/j.jfa.20160404.17

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@article{10.11648/j.jfa.20160404.17,
  author = {Henry Waleru Akani and Yellowe Sweneme},
  title = {Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {4},
  pages = {212-224},
  doi = {10.11648/j.jfa.20160404.17},
  url = {https://doi.org/10.11648/j.jfa.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160404.17},
  abstract = {This paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in Nigeria from 1981 – 2014. The objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in Nigeria. Time series data were computed from financial statement of the selected quoted manufacturing firms and stock exchange factbook. Return on Investment (ROI) and Net Profit Margin (NPM) were modeled as our dependent variables while Dividend Payout Ratio (DPR), Retention Ratio (RR), Dividend Yield (DY) and Earnings per Share (EPS) were proxied as our independent variables. Multiple regressions with the aid of Statistical Package for Social Sciences Research (SPSS) were used as data analyses techniques. Multi co-linearity, co-linearity, Durbin Watson, F-statistics and regression coefficient were used to determine the dynamic relationship between the variables. Findings revealed that all the independent variables have positive relationship with the dependent variables except dividend yield. The study recommends that operational efficiency of Nigerian financial market should be deepened and management should strengthen its effort for effective dividend policy that will increase the profitability of the quoted manufacturing firms Nigeria.},
 year = {2016}
}

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TY  - JOUR
T1  - Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis
AU  - Henry Waleru Akani
AU  - Yellowe Sweneme
Y1  - 2016/07/06
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160404.17
DO  - 10.11648/j.jfa.20160404.17
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 212
EP  - 224
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160404.17
AB  - This paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in Nigeria from 1981 – 2014. The objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in Nigeria. Time series data were computed from financial statement of the selected quoted manufacturing firms and stock exchange factbook. Return on Investment (ROI) and Net Profit Margin (NPM) were modeled as our dependent variables while Dividend Payout Ratio (DPR), Retention Ratio (RR), Dividend Yield (DY) and Earnings per Share (EPS) were proxied as our independent variables. Multiple regressions with the aid of Statistical Package for Social Sciences Research (SPSS) were used as data analyses techniques. Multi co-linearity, co-linearity, Durbin Watson, F-statistics and regression coefficient were used to determine the dynamic relationship between the variables. Findings revealed that all the independent variables have positive relationship with the dependent variables except dividend yield. The study recommends that operational efficiency of Nigerian financial market should be deepened and management should strengthen its effort for effective dividend policy that will increase the profitability of the quoted manufacturing firms Nigeria.
VL  - 4
IS  - 4
ER  -

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Author Information

Henry Waleru Akani

Department of Banking and Finance, Faculty of Management Science, Rivers State, University of Science and Technology Nkpolu, Port Harcourt, Rivers State, Nigeria
Yellowe Sweneme

Department of Banking and Finance, Faculty of Management Science, Rivers State, University of Science and Technology Nkpolu, Port Harcourt, Rivers State, Nigeria

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APA Style

Henry Waleru Akani, Yellowe Sweneme. (2016). Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. Journal of Finance and Accounting, 4(4), 212-224. https://doi.org/10.11648/j.jfa.20160404.17

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ACS Style

Henry Waleru Akani; Yellowe Sweneme. Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. J. Finance Account. 2016, 4(4), 212-224. doi: 10.11648/j.jfa.20160404.17

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AMA Style

Henry Waleru Akani, Yellowe Sweneme. Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis. J Finance Account. 2016;4(4):212-224. doi: 10.11648/j.jfa.20160404.17

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@article{10.11648/j.jfa.20160404.17,
  author = {Henry Waleru Akani and Yellowe Sweneme},
  title = {Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {4},
  pages = {212-224},
  doi = {10.11648/j.jfa.20160404.17},
  url = {https://doi.org/10.11648/j.jfa.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160404.17},
  abstract = {This paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in Nigeria from 1981 – 2014. The objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in Nigeria. Time series data were computed from financial statement of the selected quoted manufacturing firms and stock exchange factbook. Return on Investment (ROI) and Net Profit Margin (NPM) were modeled as our dependent variables while Dividend Payout Ratio (DPR), Retention Ratio (RR), Dividend Yield (DY) and Earnings per Share (EPS) were proxied as our independent variables. Multiple regressions with the aid of Statistical Package for Social Sciences Research (SPSS) were used as data analyses techniques. Multi co-linearity, co-linearity, Durbin Watson, F-statistics and regression coefficient were used to determine the dynamic relationship between the variables. Findings revealed that all the independent variables have positive relationship with the dependent variables except dividend yield. The study recommends that operational efficiency of Nigerian financial market should be deepened and management should strengthen its effort for effective dividend policy that will increase the profitability of the quoted manufacturing firms Nigeria.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Dividend Policy and the Profitability of Selected Quoted Manufacturing Firms in Nigeria: An Empirical Analysis
AU  - Henry Waleru Akani
AU  - Yellowe Sweneme
Y1  - 2016/07/06
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160404.17
DO  - 10.11648/j.jfa.20160404.17
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 212
EP  - 224
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160404.17
AB  - This paper examined the impact of dividend policy on the profitability of selected quoted manufacturing firms in Nigeria from 1981 – 2014. The objective was to investigate the existing relationship between dividend policy and profitability of the selected quoted manufacturing firms in Nigeria. Time series data were computed from financial statement of the selected quoted manufacturing firms and stock exchange factbook. Return on Investment (ROI) and Net Profit Margin (NPM) were modeled as our dependent variables while Dividend Payout Ratio (DPR), Retention Ratio (RR), Dividend Yield (DY) and Earnings per Share (EPS) were proxied as our independent variables. Multiple regressions with the aid of Statistical Package for Social Sciences Research (SPSS) were used as data analyses techniques. Multi co-linearity, co-linearity, Durbin Watson, F-statistics and regression coefficient were used to determine the dynamic relationship between the variables. Findings revealed that all the independent variables have positive relationship with the dependent variables except dividend yield. The study recommends that operational efficiency of Nigerian financial market should be deepened and management should strengthen its effort for effective dividend policy that will increase the profitability of the quoted manufacturing firms Nigeria.
VL  - 4
IS  - 4
ER  -

Copy | Download