DIVIDEND PAYMENT AND EARNINGS QUALITY OF LISTED MANUFACTURING COMPANIES IN NIGERIA

Authors

  • Taibat Adebukola Atoyebi University of Abuja
  • Tubosun Najimu Oladosu University of Abuja

DOI:

https://doi.org/10.57233/gujaf.v2i1.53

Keywords:

Dividend Changes, Dividend Paying Status, Dividend Policy, Earnings Quality, Dividend Size

Abstract

The goal of this study was to ascertain the effect of dividend payments on the earnings quality of Nigerian publicly traded manufacturing firms. The robust generalised least square methodology was used to analyze data from the annual reports and financial statements of thirty-two (32) manufacturing firms listed on the Nigerian Stock Exchange from 2009 to 2018. The findings
indicate that dividend paying status and dividend changes have significant positive effect on earnings quality. Dividend size has a negative effect on the earnings quality of listed manufacturing companies in Nigeria. Over the study period, dividend changes had a significant positive effect on earnings quality, but dividend persistence had no significant influence on the earnings quality. The study therefore recommends that Nigerian manufacturing companies should adopt a dividend payout strategy that includes paying cash dividends and maintaining a high level of earnings quality.

Author Biographies

Taibat Adebukola Atoyebi, University of Abuja

Department of Accounting,
Faculty of Management Sciences,
University of Abuja, Nigeria

Tubosun Najimu Oladosu, University of Abuja

Department of Accounting,
Faculty of Management Sciences,
University of Abuja, Nigeria

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Published

2021-04-21

How to Cite

Adebukola Atoyebi, T., & Najimu Oladosu, T. (2021). DIVIDEND PAYMENT AND EARNINGS QUALITY OF LISTED MANUFACTURING COMPANIES IN NIGERIA. Gusau Journal of Accounting and Finance, 2(1), 13. https://doi.org/10.57233/gujaf.v2i1.53