The objective of the study was to examine the relationship between ownership structure and dividend policy in Nigeria. The ownership structure variables covered included; Managerial Ownership, Institutional Ownership and Foreign Ownership. The longitudinal research design was employed in the study as dividend policy was examined across time and cross section. The study employed the simple random sampling technique in selecting a sample size consisting of 70 companies The secondary data used for the study were retrieved from the audited financial statements of the various quoted companies from 2009 to 2016. The findings of the study revealed that Managerial Ownership (MOWN), Institutional Ownership (IOWN) Foreign Ownership (FOWN) have significant effects on dividend policy.Results from the dividend adjustment models reveal that the effect of ownership structure variables on dividend payout is strongly moderated by earnings changes especially in the full adjustment model. The study recommends that companies adopt a diverse ownership structure with elements of managerial, foreign and institutional presence as this can ensure that the dividend policy decision is one that is balanced and prevents expropriation, address agency issues and put the company in a sustainable path in the long run.
The study investigated the effect of dividend policy on shareholders wealth in Nigeria between 1987 and 2016. The study adopted market price per share as proxy for shareholders’ wealth and the dependent variable; while dividend per share, earnings per share and net assets per share were used as proxies for dividend policy and the explanatory variables. Secondary time series data was collected from the annual reports of sampled 25 quoted companies for the period. The study employed descriptive statistics, the Augmented Dickey Fuller unit root test, the Johansen co-integration procedure and ordinary least squares technique based on the E-views software to examine the link between the variables. The results revealed that earnings per share and net assets per share had positive influence on market price per share, but dividend per share had negative effect on market price per share. The study also found that the predictor variables had combined effect on market price of shares, but none of them had direct independent influence in determining the price of the stock in the market. The study therefore concludes that dividend pay-out policy does not have effect on shareholders’ wealth and shareholders do not react to dividend information. Based on this finding, the study recommends that firms operating within this environment should place down on the distribution of earnings as dividend but rather focus more on the investment of retained earnings for the expansion of the business to boost growth in earnings and net assets.