HELSINKI JOURNAL OF SOCIAL SCIENCES AND HUMANITIES (HJSSH)
DIVIDEND POLICY, FIRM CHARACTERISTICS, AND SHARE PRICE FLUCTUATIONS: THE MODERATING ROLE OF BOARD SIZE IN NIGERIA’S CONSUMER GOODS SECTOR
E-ISSN: 7764-9221
P-ISSN: 3442-3567
DOI: https://iigdpublishers.com/article/1660
This study examined the relationship between dividend policy, firm characteristics and share price fluctuations among listed consumer goods firms in Nigeria, with particular emphasis on the moderating role of board size. The study adopted a quantitative research design and analysed panel data comprising 154 firm-year observations. Share price fluctuations constituted the dependent variable, while dividend payout ratio, dividend yield, board size, their interaction terms, firm size, sales growth, profitability, liquidity and leverage served as explanatory variables. Pooled Ordinary Least Squares, Fixed Effects and Random Effects models were estimated, with post-estimation tests used to select the appropriate specification. The Breusch–Pagan Lagrange Multiplier and Hausman tests supported the Random Effects model. The results showed that dividend payout ratio and dividend yield had negative but statistically insignificant effects on share price fluctuations. Board size had a statistically significant negative effect, while its interactions with dividend payout ratio and dividend yield were statistically insignificant, indicating that board size did not significantly moderate the relationships between dividend policy and share price fluctuations. Leverage, however, had a positive and statistically significant effect on share price fluctuations. The study concludes that dividend policy does not significantly explain share price fluctuations among the sampled firms, whereas board size and leverage are relevant to share price behaviour. The findings underscore the importance of considering corporate governance and financial structure in understanding share price dynamics in Nigeria’s consumer goods sector.
Olurin Enitan Olurotimi PhD, Ajibola Olurotimi Bamitale PhD & Oladipo Samson Idowu PhD
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