AGENCY CONFLICT AND CORPORATE DIVIDEND POLICY DECISIONS IN NIGERIA
Journal Title: Asian Economic and Financial Review - Year 2013, Vol 3, Issue 8
Abstract
Differences in management and shareholders priorities have been recognized and accepted to exist creating problems in the agency to which financial theorists opined that dividend payments is the best means of resolving the conflict. Results obtained using the multiple regression equation model to identify dividend policy determinants of quoted firms in Nigeria showed that solutions to agency problems past dissatisfactory behaviors of shareholders (complaints of shareholders) is not a determinant of current and future dividend decisions while there exists an inverse relationship between the needs and desires of shareholders and the naira dividend paid by the firms. Thus dividend policies of quoted firms in Nigeria are not aimed at solving the existing agency problems in these firms. To resolve the agency problems in quoted firms in Nigeria good corporate governance structure should be enthroned in quoted firms creating better decision structure for dividend; shareholders should be increasingly represented on the board of quoted firms in Nigeria improving on the chance of consideration of their interests in corporate dividend decisions; and the needs of shareholders should be considered in dividend policy design giving them a sense of belonging, increasing satisfaction and reducing agency conflict.
Authors and Affiliations
Nwidobie Barine Michael| Lecturer Department of Accounting and Finance Caleb University, Lagos
Keywords
Related Articles
- EP ID EP1948
- DOI -
- Views 410
- Downloads 25
THE EFFECT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE, EVIDENCE FROM EGYPT
Corporate governance is well thought-out to have major implications for the growth prediction of an economy. Fine corporate governance practices are viewed as important in decreasing risk for investors; catch the attenti...
FINANCIAL MARKET STRUCTURE AND ECONOMIC GROWTH: EVIDENCE FROM NIGERIA DATA
In this paper, we investigate both the long run and short run relationships between financial structure and economic growth using time series data. The presence of a unit root in the time series data was tested using Aug...
A MACRO STRESS TEST MODEL OF CREDIT RISK FOR THE TURKISH BANKING SECTOR
Banking sector occupy an important position in the financial system. Consequently, in order to maintain financial stability in a country, financial system and major banks of the sector have importance. At this point, fin...
INSTITUTIONS AND ECONOMIC GROWTH
The objective of this paper is to study the effect of institutional factors on economic growth of a set of 37 developed and developing countries for six successive periods of five years, from 1975 until 2000, using a sta...
THE IMPACT OF BANK RESPONSES TO RECOVERY SERVICE SATISFACTION
In the context of harsh competition in the retail banking sector in Vietnam, how to retain existing customers through effective responses to service failure has become a critical focus point of bank executives. Satisfact...