CORPORATE DIVIDEND POLICY AND ACCOUNTING INFORMATION OF QUOTED CONSUMER GOODS MANUFACTURING FIRMS IN NIGERIA

Abstract

This study examined the relationship between corporate dividend policy and accounting information of quoted consumer goods manufacturing firms in Nigeria for the period 2013–2023. The study specifically investigated the effects of earnings per share (EPS), profitability (ROA and ROE), liquidity, and firm size on dividend payout decisions. The ex post facto research design was adopted, and data were collected from audited annual reports and financial statements of selected firms. Descriptive statistics, correlation analysis, and panel regression techniques were employed to analyze the data. The findings revealed that EPS, profitability, liquidity, and firm size all had positive and significant effects on dividend policy. The results indicated that firms with higher earnings, better profitability, adequate liquidity, and larger size were more likely to maintain consistent and higher dividend payouts. The study concluded that high-quality accounting information is a critical determinant of dividend decisions and plays a key role in reducing information asymmetry between management and investors. Based on the findings, recommendations were made for corporate managers, investors, and regulators to enhance transparency, strengthen dividend practices, and improve market confidence. The study contributed to existing literature by providing sector-specific evidence from Nigeria’s consumer goods manufacturing industry and validated the applicability of the Bird-in-Hand, Signalling, and Agency theories in an emerging market context.