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Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?

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Abstract

The study investigates the impact of oil price, institutional quality (proxied by corruption and legal environment) and firm-implicit elements on the dividend policy of listed Nigerian companies for a period of 2001-2016. System-GMM analysis was used in the estimation process and findings revealed that oil price, quality of institutions and firm-inherent drivers play significant roles in firms’ dividend decisions. Oil price, institutional quality and firm-implicit variables exerted statistically significant influence on dividend per share. This study thus suggests, that prevailing institutional and macro-economic conditions should be considered when making dividend policy decisions and that the nation’s high corruption index poses great threats to dividend behaviors of Nigerian corporate life.

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  • A. Olayiwola, John & M. Ajide, Folorunsho, 2019. "Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?," Working Papers 12, Department of Economics, University of Ilorin.
    • Handle: RePEc:ris:decilo:0012
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    Keywords

    Dividend per share; Corruption; Legal System; Generalized Moment method; Oil Price Volatility; Nigeria.;
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