DOES OPTIMAL BOARD STRUCTURE INFLUENCES DIVIDEND POLICY OF THE NIGERIAN DEPOSIT MONEY BANKS?
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 3
Abstract
This study examines whether optimal board structure influences dividend policy of the Nigerian Deposit Money Banks (DMBs). Optimal board structure in the contest of this study is defined in term of appropriate board size with greater proportion of independence. It postulated that the board of directors comprises of executive and non[1]executive directors and its size depends on the complexity of their business. The study relies on agency and resource dependency theory of corporate governance to explain the inconsistence in the board structure of an organisation. Several literatures were reviewed to justify the reality of governance as critical factors that may influence dividend policy. The paper utilized panel data approach and stata software package was used to analyse the data collected from 8 deposit money banks spinning from 2010 to 2019. Findings from the result suggest that executive directors positively drive dividend policy but not significant while non executive director is negative but significantly influence dividend policy. The earnings per share is positive and also significant. The study also confirms that optimal board sizes represented by dummy variables are not significant in the Nigerian banking sector. The study recommends that commercial bank should fix their board size in line with their circumstances and policy should be directed to improve the independence and quality of non-executive directors present in the board.
Authors and Affiliations
Awotundun Dele Ayo
Keywords
Related Articles
- EP ID EP709154
- DOI -
- Views 70
- Downloads 0
FINANCIAL RISK AND PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA: MODERATING ROLE OF BOARD DIVERSITY
The financial crises experience by banking sector in Nigeria as a result of 2009 global financial economic meltdown that have led to the challenges of liquidity problem and high operational cost to banks which have affe...
CORPORATE OWNERSHIP STRUCTURE AND INVESTORS’ CONFIDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
This paper investigates the effect of corporate ownership structure on investors’ confidence of listed deposit money banks in Nigeria. The study adopted correlational research design using panel data collected from annu...
EFFECT OF BANK SPECIFIC AND MACRO-ECONOMIC FACTORS ON NONPERFORMING LOANS OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
The level of non-performing loan in Nigeria has being on the increase without adequate empirical evidence to explain or arrest this ugly situation. Credit risk is one of the prominent areas of focus both by the individua...
MODERATING EFFECT OF LEVERAGE ON THE VALUE RELEVANCE OF ACCOUNTING INFORMATION IN THE NIGERIAN LISTED OIL AND GAS FIRMS
The study investigates the moderating effect of leverage on the value relevance of accounting information in the Nigerian listed oil and gas firms. The study used correlational research design and the data was extracte...
INFLUENCE OF ENVIRONMENTAL ACTIVITIES AS CORPORATE SOCIAL RESPONSIBILITY DIMENSION ON FIRM FINANCIAL PERFORMANCE OF NIGERIAN LISTED FIRMS
Ever since the beginning of companies’ activity in Nigeria, the value of corporate social responsibility (CSR) has been an important topic in accounting research. Despite extensive studies on CSR activities in Nigeria, s...