Does Dividend Policy Affect Firm Earnings? Empirical Evidence from Nigeria
Introduction
Dividend policy is considered to be the most important financial decision
Literature Review
Dividend-Irrelevance Theory in a World without Taxes
Bird-in-hand theory
Agency cost and the free cash flow theory
Signaling Theory
Tax-Preference Theory
The Clientele Effect Theory
Methodology
Population and Sample
17 manufacturing firms
The Estimation Techniques
Panel data regression
Model Specification
Method of Estimation
Fixed effects model
Empirical Results and Analysis
Descriptive Statistics
Correlation Analysis
Inferential Statistics
Fixed-Effects Regression results
Conclusion and Policy Implications
Current dividend payout has a positive and significant influence on EPS, while that of past dividend is weak
Growth opportunity has a positive and significant influence on EPS
Leverage (ratio of total debt to total capital of firm) has a positive but not significant impact on EPS
Firm’s size has a negative impact on EPS but not significant
Increased cash flow tends to stimulate higher performance as the relationship between cash flow and firm
performance is positive (though not significant)