FINANCIAL LEVERAGE AND DIVIDEND POLICY OF LISTED INDUSTRIAL GOODS FIRMS IN NIGERIA

This study investigated the impact of financial leverage on dividend policy of quoted industrial goods firms in Nigeria. This paper examined the influence of debt-to-equity ratio (DER), debt-to-asset ratio (DAR), and interest coverage ratio (ICR) on dividend per share. Correlational research design was adopted and employed secondary panel data obtained from the audited financial statements of ten (10) firms listed in the Nigerian Exchange (NGX) Group. The purposive selected industrial goods firms listed on the NGX over a ten-year period from 2015 to 2024. The random effect model was used to analyse the data. The findings revealed that DER positively impacted DPS but was insignificant. In addition, DAR negatively impacted DPS but was insignificant. ICR had an insignificant but negative impact on DPS. The study concluded that financial leverage does not significantly affect the dividend policy of quoted industrial goods companies in Nigeria. Therefore, the study recommends that firms should opt for a balanced capital structure, invest debt-financed assets in productive ventures and run their operations efficiently to maintain dividend payments.