Impact of Accounting Measures of Performance on Dividend Payout of Listed Manufacturing Firms in Nigeria

Abstract

The study investigates the effect of financial performance on the dividend payout of listed manufacturing firms in Nigeria from 2015 to 2024. Adopting an ex-post facto and correlational research design, secondary data were obtained from the Nigerian Exchange Group and analyzed using panel regression techniques. Financial performance was measured by return on assets (ROA), return on equity (ROE), return on investment (ROI), and net profit margin (NPM), while dividend payout (DPO) served as the dependent variable. The findings indicate that NPM is a significant positive determinant of dividend payout, while ROA, ROE, and ROI have weak or non-significant effects. The study concludes that profitability, particularly as captured by net profit margins, plays a critical role in dividend policy decisions among Nigerian manufacturing firms. It is recommended that managers focus on improving profit efficiency and utilization, while regulators provide a stable policy environment to enhance investor confidence.