DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF QUOATED BANKS IN NIGERIA

ABSTRACT

This study empirically investigates, using return on asset, the effect of dividend payout on listed banks' performance in Nigeria (ROA as the performance measure). Descriptive statistics, correlation analysis, and the panel OLS regression technique were used to investigate a sample of five listed banks between 2017 and 2021. The various analyses were used to investigate the connection between the Nigerian listed banks' performance and the dividend payout variable. The empirical findings showed that bank dividend payout had no appreciable impact on their performance in Nigeria. While size had a considerable impact on two of the performance indicators, the effects of leverage and corporate social responsibility spending were negligible. We suggest, among other things, prudent dividend practices and capital structure management techniques, good macroeconomic environment, as well as strong regulatory framework and institutional mechanism to enhance performance of banks in Nigeria.