Doctor of Philosophy (Ph.D.) Theses and Dissertations

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Browsing Doctor of Philosophy (Ph.D.) Theses and Dissertations by Author "Olayinka, Segun Wale."

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    Stock liquidity, dividend policy and performance of non-financial quoted in Nigeria(2012-2019).
    (Department of Management and Accounting, Faculty of Adminisration, Obafemi Awolowo University., 2022) Olayinka, Segun Wale.
    This study examined the trend of stock liquidity and dividend payment of non-financial quoted companies in Nigeria from 2012 to 2019 assessed the macro-economic factors influencing dividend payout policy of non financial quoted companies in Nigeria; and investigated the influence of stock liquidity on the amount paid as dividend by non-financial quoted companies in Nigeria. It also examined the effect of stock liquidity on financial performance of non-financial quoted companies in Nigeria; and analysed the dynamic relationships among stock liquidity, dividend payout policy and performance of non-financial quoted companies in Nigeria. These were with the view to providing information on the impact of stock liquidity on dividend payout and performance of non-financial quoted companies in Nigeria. The study adopted longitudinal research design. Secondary source of data collection was employed. A sample of 50 non-financial quoted companies out of the population of 109 non-financial quoted companies were selected using purposive sampling technique. Selection was also based on the availability of required financial information in their annual reports for the sample periods and consistent trading on the floor of Nigerian stock exchange market. Annual data on variables such as turnover ratio, dividend payment ratio, return on asset, firm age, financial leverage, firm size, investment opportunity and cash holding were obtained from the audited Annual Reports of selected non-financial quoted companies and Nigeria Stock Exchange Facts-book. Also, data on gross domestic product, consumer price index, exchange rate, interest rate and unemployment rate were obtained from statistical bulletin published by the Central Bank of Nigeria. Data collected were analysed using percentages, graphs, panel vector autoregression (VAR), vector autoregression lag, impulse response function (IRF) and variance decomposition (VD) and GMM estimation technique. The results showed that the trend of dividend payout ratio and stock liquidity were characterized with zigzag behaviour as the pattern showed that dividend payout ratio stood at 0.556 in 2012, while stock liquidity proxy by turnover ratio of the stocks stood at 0.2138, dividend pay-out ratio DPR increased to 0.8106 in 2013, while turnover ratio of the stocks in average rose to 0.328, both DPR and turnover ratio TOR declined in 2014, 2015 and a sudden jump in decline of DPR to -4.3682 was witnessed in 2016. DPR and TOR witnessed increase in 2017 to 2019 except in 2018 when dividend pay-out ratio DPR suffered another decline. Also, results revealed that macro-economic factors such as GDP (t =2.1134, p<0.05) and Exchange Rate (t =0.3127, p<0.05) have positive effect on dividend policy while other variables exercise a negative influence on dividend policy of non-financial quoted companies in Nigeria. Furthermore, the results revealed that turnover ratio TOR had positive and significant relationship with dividend pay-out ratio DPR (t=2.7295, p<0.05) and firm performance (t=2.2862, p<0.05). Finally, the result of the dynamic relationship depicted that dividend pay-out ratio DPR does not response to shock in both turnover ratio TOR and return on asset ROA. Also, the turnover ratio TOR model revealed that return on asset ROA and dividend pay-out ratio DPR failed to induce the reaction of stock liquidity. The study concluded that stock liquidity has significant positive influence on both dividend payout policy and performance of non-financial quoted companies in Nigeria and those firms with more liquid stocks pay higher amount of dividend than those with less liquid stocks.