Authors :
Akpadaka, Ovbe Simon
Volume/Issue :
Volume 8 - 2023, Issue 10 - October
Google Scholar :
https://tinyurl.com/4fns4sjh
Scribd :
https://tinyurl.com/3xwkp2uu
DOI :
https://doi.org/10.5281/zenodo.10044108
Abstract :
In the evolving landscape of contemporary
corporate finance, the intersections between dividend
policy, ownership concentration, and firm value present
intricate interplays demanding nuanced exploration.
Adopting a positivist stance, this paper examines how
ownership concentration significantly modifies the
relationship between dividend policy and company
value. The primary objective of this study revolves
around examining the moderating effect of ownership
concentration on the dividend policy-firm value
dynamic. To this end, we embarked on an analysis of
publicly traded consumer goods companies over a
decade, evaluating dividend practices, ownership
nuances, and their subsequent impacts on firms’ value.
The ex-post facto research design capitalizes on a
balanced panel data approach, encompassing data from
14 pivotal firms spanning the years 2013–2022. Multiple
regression served as our analytical beacon. The
revelations were insightful: ownership concentration and
dividend payout ratio both exhibited a significant and
positive influence on the valuation of listed consumer
goods firms in Nigeria, suggesting an enhanced
perceived value for these firms. The relationship
between dividend payment ratio and firm value was
underscored by a favorable and significant moderation
effect of ownership concentration. For business leaders,
investors, regulators, and other key stakeholders, these
findings stand as instrumental. Firms, armed with this
knowledge, can strategically sculpt their dividend
policies, aligning with shareholder interests, thereby
optimizing firm value. Investors, on the other hand, can
tap into these observed correlations for more astute
decision-making. This paper not only bridges existing
knowledge gaps but also offers actionable
recommendations for firms aiming to craft optimized
dividend policies, considering the multifaceted dynamics
of ownership structures, and thereby enhancing their
value proposition in the marketplace.
Keywords :
Dividend Policy, Ownership Structure, Firm Value, Nigerian Exchange Group.
In the evolving landscape of contemporary
corporate finance, the intersections between dividend
policy, ownership concentration, and firm value present
intricate interplays demanding nuanced exploration.
Adopting a positivist stance, this paper examines how
ownership concentration significantly modifies the
relationship between dividend policy and company
value. The primary objective of this study revolves
around examining the moderating effect of ownership
concentration on the dividend policy-firm value
dynamic. To this end, we embarked on an analysis of
publicly traded consumer goods companies over a
decade, evaluating dividend practices, ownership
nuances, and their subsequent impacts on firms’ value.
The ex-post facto research design capitalizes on a
balanced panel data approach, encompassing data from
14 pivotal firms spanning the years 2013–2022. Multiple
regression served as our analytical beacon. The
revelations were insightful: ownership concentration and
dividend payout ratio both exhibited a significant and
positive influence on the valuation of listed consumer
goods firms in Nigeria, suggesting an enhanced
perceived value for these firms. The relationship
between dividend payment ratio and firm value was
underscored by a favorable and significant moderation
effect of ownership concentration. For business leaders,
investors, regulators, and other key stakeholders, these
findings stand as instrumental. Firms, armed with this
knowledge, can strategically sculpt their dividend
policies, aligning with shareholder interests, thereby
optimizing firm value. Investors, on the other hand, can
tap into these observed correlations for more astute
decision-making. This paper not only bridges existing
knowledge gaps but also offers actionable
recommendations for firms aiming to craft optimized
dividend policies, considering the multifaceted dynamics
of ownership structures, and thereby enhancing their
value proposition in the marketplace.
Keywords :
Dividend Policy, Ownership Structure, Firm Value, Nigerian Exchange Group.
