Universal Journal of Accounting and Finance Vol. 9(6), pp. 1366 - 1376
DOI: 10.13189/ujaf.2021.090615
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Liquid Stock and Dividend Payment of Non-financial Quoted Companies in Nigeria


Segun Wale Olayinka 1,*, Momodou Mustapha Fanneh 2, Rafiu Oyesola Salawu 1
1 Department of Management and Accounting, Obafemi Awolowo University, Ile-Ife, Nigeria
2 School of Business and Public Administration, University of the Gambia, The Gambia

ABSTRACT

Payment of dividends among firms in Nigeria has become irregular and setting an optimal dividend policy has become an herculean issue. Studies in developed countries indicated that stock liquidity influences dividend payout and this has not been well established in Nigeria. Hence, this study examined the effect of liquid stock on dividend payment of fifty (50) non-financial quoted companies in Nigeria between 2012 and 2019. The study employed secondary source of data collection and analysis was done using descriptive statistics and inferential statistics. The study model expressed the effect of Turnover Ratio, Firm Size, Financial Leverage, Cash Holding and Investment Opportunity on Dividend Payment Ratio using OLS Panel Regression. The results based on the random effect model showed that turnover ratio (TOR) which is a proxy for liquid stock accounts for a significant positive influence on dividend payment while other variables showed negative influence except cash and cash equivalent. Based on the above findings, the study concluded that for most of the companies operating in the non-financial sector of the Nigerian economy, the influence of liquid stock on the amount paid as dividend is positive and significant and those firms with more liquid stocks pay higher amount of dividend than those with less liquid stocks.

KEYWORDS
Dividend Decision, Investors, Liquid Stock, Quoted Companies

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Segun Wale Olayinka , Momodou Mustapha Fanneh , Rafiu Oyesola Salawu , "Liquid Stock and Dividend Payment of Non-financial Quoted Companies in Nigeria," Universal Journal of Accounting and Finance, Vol. 9, No. 6, pp. 1366 - 1376, 2021. DOI: 10.13189/ujaf.2021.090615.

(b). APA Format:
Segun Wale Olayinka , Momodou Mustapha Fanneh , Rafiu Oyesola Salawu (2021). Liquid Stock and Dividend Payment of Non-financial Quoted Companies in Nigeria. Universal Journal of Accounting and Finance, 9(6), 1366 - 1376. DOI: 10.13189/ujaf.2021.090615.