Nigerian Journal of Banking and Financial Issues (NJBFI)

EFFECTS OF DIVIDEND DECISIONS ON PERFORMANCE OF LISTED FOOD AND BEVERAGES FIRMS IN NIGERIA

Abstract

This study examined the effect of dividend decision on performance of listed food and beverages firms in Nigeria. Panel regression estimate which involved pooled regression, fixed effect estimate and random effect estimate as well as Hausman tests were employed as the analytical techniques. Data from 10 selected food and beverages firms on financial decision (proxied by firm size, dividend payout ratio and cashflow from operating activities of firm); performance (proxied by return on capital employed) were obtained from secondary source, namely, Annual Financial Statement of respective firms over a period of twelve (12) years from 2011 to 2022). The result revealed that cashflow from operating activities has positive and significant effect on return on capital employed (0.048168; P = 0.04 < 0.05); dividend payout ratio has negative and significant effect on return on capital employed (-0.158348; P =0.02 <0.05); firm size has positive and significant effect on return on capital employed (0.130383; P = 0.02 <0.05) respectively of listed food and beverages firms in Nigeria. Therefore, the study concluded that dividend decision has negative and significant effect on performance of corporate firms in Nigeria.