THE EFFECT OF OWNERSHIP STRUCTURE ON DIVIDEND POLICY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

This study investigates the effect of ownership structure on the dividend policy of listed consumer goods firms in Nigeria. Ownership structure was represented by managerial ownership and foreign ownership while dividend policy was explained by dividend payout ratio. Employing panel data from 21 firms spanning from 2014 to 2023, the study utilizes descriptive statistics, correlation, and multiple regression analysis to examine the effect. Findings reveal that managerial ownership has an insignificant negative effect on dividend payout ratio (DPR), suggesting limited influence on dividend decisions. Conversely, foreign ownership positively and significantly affects DPR, indicating that higher foreign ownership leads to increased dividend payouts and which reflects foreign investors' preference for regular returns. Firm size, a control variable, shows a significant positive relationship with DPR, highlighting the propensity of larger firms to adopt generous dividend policies. The study underscores the role of ownership dynamics and firm characteristics in shaping dividend policy and recommends that firms consider foreign investors' preferences and leverage on their size to enhance shareholder returns. Regulatory frameworks promoting transparency and shareholder rights are also suggested to foster investor confidence.