1OSEMWENKHAE, O. & 2AIGBOVO, O.
1Department of Entrepreneurship, Faculty of Management Sciences
University of Benin, Benin City, Nigeria
2Department of Finance, Faculty of Management Sciences
University of Benin, Benin City Nigeria
*For correspondence, email: osabuohien.osemwenkhae@uniben.edu
Abstract
The study examined at the factors that affect listed brewery firms dividend payouts in Nigeria between 2014 to 2022. Secondary data were employed using a longitudinal research approach. The population of the study is made up of 5 brewery firms quoted on the Nigerian Exchange Group (NGX) as at December 31st, 2022, of which four brewery firms with published annual reports and accounts for the period of the study were selected to comprise the study’s sample and the sample was chosen using purposive sampling technique. The Panel Least Squares estimation method was used to estimate the model. The results of the study show that the dividend payout of Nigeria’s listed brewery firms is highly influenced by firm size and leverage. Nevertheless, it was shown that the dividend distribution was not significantly influenced by profitability and firm age with the enumerated brewery firms used for this research. The study suggests that investors who prefer regular bonus payment should invest in large and highly leveraged brewery firms since firm size and leverage stimulates payment of dividend by brewery firms in Nigeria. Also, investors should not be convinced by the firms‘ age and profitability as firm age and profitability did not significantly influence dividend payout of listed brewery firms in Nigeria.
Keywords: Dividend Payout, Firm Age, Firm Size, Brewery Firms, Nigeria Exchange Group