Corporate Governance Regulation Practices And Dividend Policies Of The Consumer Goods Industry In Nigeria

Abstract

This study evaluates the effect of corporate governance regulation practices on the dividend policy of twenty consumer goods companies listed on the Nigerian Stock Exchange over the period of 2011 to 2020. Data was collected from the Annual reports and accounts of the. A panel data methodology (Time Fixed-effect regression technique) was employed for the analysis of data. The results reveal that profit and board size have significant positive effects on dividend policy while the number of the Non-Executive Directors (NED), has a significant but negative effect on the dividend policy. Audit committee size has a positive but insignificant effect while gender diversity of the board exhibit negative but insignificant effect. It is suggested that since the major purpose of any firm is producing and delivering long-term sustainable value in a way that is consistent with their obligations as a responsible corporate citizen, then consumer goods firms should therefore view corporate governance not as an end itself but a vital facilitator to maximizing value for all stakeholders. Also, to enhance the level of influence of Corporate Governance on Dividend Policy in the Consumer goods industry, the size of the board should be increased and at the same time reduce the number of NEDs on board as this will make the management to protect not only their interest but the interest of all stakeholders.