DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA
Dividends are payments made by a company to its shareholders to compensate them for the unforeseen risk they decided to undertake and for the time value of their investment in the organisation This study examined the impact of dividend policy (DP) on the financial performance of oil and gas in Nige...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Kwara State University, Malete Nigeria
2023-11-01
|
| Series: | Malete Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/76 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1823859637853618176 |
|---|---|
| author | Ajose Kehinde Gabriel |
| author_facet | Ajose Kehinde Gabriel |
| author_sort | Ajose Kehinde Gabriel |
| collection | DOAJ |
| description |
Dividends are payments made by a company to its shareholders to compensate them for the unforeseen risk they decided to undertake and for the time value of their investment in the organisation This study examined the impact of dividend policy (DP) on the financial performance of oil and gas in Nigeria. The study employed exploratory research design. Six (6) listed oil and gas companies were chosen through a purposive sampling technique and data extracted from the annual reports of these oil and gas from year 2009 to 2021. A panel data regression was used to analyse the data. Dividend policy was proxies with dividend per share (DPS), leverage (LEV), liquidity (LIQ), Earnings per share (EPS), and risk (RISK) while financial performance was proxies with Return on Equity (ROE) and Return on Asset (ROA). Findings revealed that the variable- leverage (LEV), earnings per share (EPS), risk (RISK) has statistical significant effect on the Return on Asset (ROA) while Dividend per share (DPS) and liquidity (LIQ) have negative and significant impact on Return on Asset (ROA). Results also, show that the variable- leverage (LEV), earnings per share (EPS), risk (RISK) has statistical significant effect on the Return on Asset (ROE) while Dividend per share (DPS) and liquidity (LIQ) have negative and significant impact on Return on Asset (ROE). It was concluded that dividend policy had negative significant impact on return on asset and return on equity. The study recommended that, the company would pay no dividend. They would retain all earnings to maximise market price per share since they can earn more on investment than share holder expectation.
|
| format | Article |
| id | doaj-art-b99ef86564c645abb168052ad3db3e88 |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2023-11-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-b99ef86564c645abb168052ad3db3e882025-02-10T23:06:35ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032023-11-0131DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIAAjose Kehinde Gabriel0Mcpherson University, Seriki Sotayo, Ogun State, Nigeria Dividends are payments made by a company to its shareholders to compensate them for the unforeseen risk they decided to undertake and for the time value of their investment in the organisation This study examined the impact of dividend policy (DP) on the financial performance of oil and gas in Nigeria. The study employed exploratory research design. Six (6) listed oil and gas companies were chosen through a purposive sampling technique and data extracted from the annual reports of these oil and gas from year 2009 to 2021. A panel data regression was used to analyse the data. Dividend policy was proxies with dividend per share (DPS), leverage (LEV), liquidity (LIQ), Earnings per share (EPS), and risk (RISK) while financial performance was proxies with Return on Equity (ROE) and Return on Asset (ROA). Findings revealed that the variable- leverage (LEV), earnings per share (EPS), risk (RISK) has statistical significant effect on the Return on Asset (ROA) while Dividend per share (DPS) and liquidity (LIQ) have negative and significant impact on Return on Asset (ROA). Results also, show that the variable- leverage (LEV), earnings per share (EPS), risk (RISK) has statistical significant effect on the Return on Asset (ROE) while Dividend per share (DPS) and liquidity (LIQ) have negative and significant impact on Return on Asset (ROE). It was concluded that dividend policy had negative significant impact on return on asset and return on equity. The study recommended that, the company would pay no dividend. They would retain all earnings to maximise market price per share since they can earn more on investment than share holder expectation. https://majaf.com.ng/index.php/majaf/article/view/76Dividend per shareLeverageLiquidity |
| spellingShingle | Ajose Kehinde Gabriel DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA Malete Journal of Accounting and Finance Dividend per share Leverage Liquidity |
| title | DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA |
| title_full | DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA |
| title_fullStr | DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA |
| title_full_unstemmed | DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA |
| title_short | DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOTED OIL AND GAS COMPANIES IN NIGERIA |
| title_sort | dividend policy and financial performance of quoted oil and gas companies in nigeria |
| topic | Dividend per share Leverage Liquidity |
| url | https://majaf.com.ng/index.php/majaf/article/view/76 |
| work_keys_str_mv | AT ajosekehindegabriel dividendpolicyandfinancialperformanceofquotedoilandgascompaniesinnigeria |