This study examined the effect of dividend tax policy on dividend payout in selected Nigerian food and beverages firms. The study employed a cross-sectional approach using both explanatory and exploratory design. Fifteen out of twenty one quoted food and beverages firms on the Nigeria stock exchange (NSE) as at December 2018 were randomly selected to constitute the study sample. Four hundred copies of structural questionnaire were distributed but only three hundred and twenty copies were correctly completed and useful for the analysis. The study revealed that dividend tax policy was significant on a dividend payout (f-statistic =27.52; p=0.000) with R-square =0.285. When the moderation variable effect (inflation) was considered, it was also found that dividend tax policy influenced dividend payout of the selected firms (F-statistic=15.89; p=0.000).The study further revealed that tax policy has significant effect on dividend payout in the selected firms. The study therefore recommended that management of firms should adopt more of stock dividend policy than cash concluded payout.
Credit Risk and Financial performance: An empirical study of deposit money banks in Nigeria (Published)
Money deposit banks’ ability to mitigate credit risks has been a contemporary and controversial debate in literature, in contributing and extending the frontiers, this study examined the effect of credit risk on financial performance of money deposit banks in Nigeria. The study adopted an expo facto research design, descriptive and using inferential statistics to analyse the data. The population consisted of all the 19 money deposits banks (MDB) listed on the Nigeria stock exchange as at 31st December, 2018. A sample of 13 MDB were chosen on purpose, based mainly on availability of complete data within the study period under consideration. The study covered 169 firm-year observations for the period of 2006-2018. The study extracted secondary data from the financial statements of the banks explored for the study. The study identified three variables of financial performance (dependent variable) surrogated with return on capital employed (ROCE), the independent variable of credit risk proxied with non-performing loans, capital adequacy ratio, loan loss provisions loan to deposit ratio and the control variables of bank Size. The study found that credit management had a positive significant effect on financial performance of the MDB.(Ad R2=0.028,F(4,4170) =2.26;P-value <0.05)When the control variable of bank size (BSZ), stronger effect was exhibited, the study found that credit risk with bank size had a stronger significant effect on financial performance of MDB in Nigeria(Ad.R2=0.4311,F(4,4170)=321.95;p-value<0.05). The study concluded that credit management influences the financial performance of Deposit Money Banks in Nigeria. The study recommended that management of the MBD should design and maintain a robust credit management strategy and framework as well as stringent credit policy that would decrease non-performing loan and default level; and improve their performance level in Nigeria.
Financial Accounting Information Relevance and Share Prices: A Case Study of Unilever Nigeria PLC Listed on the NSE (Published)
This study examined financial accounting information relevance and share price association using Unilever Nigeria PLC, a multinational company listed on the Nigerian Stock Exchange under the consumer goods sector as a case study. The study adopted market price per share (MPS) as proxy for share price and the dependent variable, while earnings per share and dividend per share were the financial accounting data used as the independent variables. Secondary data was collected through content analysis of the published annual financial statements of Unilever Nigeria PLC for the period 2009 to 2018 and the Nigerian Stock Exchange fact book. The study employed descriptive statistics and linear regression analysis based on the ordinary least squares method as techniques for data analysis. The results of the study revealed that earnings per share (EPS) and dividend per share are not significantly related to market price per share (MPS). Based on the findings, the study concluded that financial accounting information (EPS and DPS) are not relevant for determining the market price of shares. This implies that EPS and DPS are not relevant for determining the market price of Unilever shares. The study recommended among others, that more inclusive further studies should be conducted to be able to make general inference on the subject concerning the consumer goods sector in Nigeria.