ABSTRACT
This study investigated dividend policy as a
strategic tool of financing in corporate organizations in Nigeria.
Specifically, it examined the nature of relationship between dividend payments
and the value of the firms.
The study employed secondary annual data,
collected from two selected commercial banks operating in Lagos State over a
period of twenty years from 1988 to 2008. The secondary annual data were
sourced from annual reports and statement of Accounts of the selected
commercial banks and the central Bank of Nigeria
(Various issues). The study employed ordinary
Least squares method to examine the effects of dividend policy on capital
structure of corporate organizations in Nigeria. Simple Regression Analysis was
also employed to analyze the relationship between dividend policy and capital
structure of the sample commercial banks.
The empirical results showed that there is a
relationship between earnings per share and dividend payout with co-efficient
values of 138.200 (?t= 8.120, P<
0.05). Also, the results revealed that payout ratio has a positive relationship
with profit after tax with coefficient value of 30708.728 (?t= 6.297, P< 0.05).
The study concludes that dividend policy decision
is not a decision of the board of directors alone. The shareholders should be
given recognition in "a policy like this because they are directly
affected by the policy.
TABLE
OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
1.2 Statement of the problem
1.3 Research Questions
1.4 Objective of the study
1.5 Statement of Hypothesis
1.6 Methodology of the Study
1.7 Significance of the Study
1.8 Limitation and Scope of the Study
1.9 Definition of Terms
References
CHAPTER TWO
LITERATURE
REVIEW
2.0
Introduction
2.1
Concept of Dividend and Dividend
Policy
2.2
Forms of Dividend
2.3
Theoretical Viewpoint
2.3.1 Dividend Relevant Theory: Walter's Model
2.3.2
Criticism of Walter's Model
2.3.3
Dividend Relevant: Gordon's Model
2.3.4
Dividend and Uncertainty: The
Bird-In-The Hand Argument
2.4
Dividend Irrelevant Theory
2.4.1
Criticisms of M & M
Theory of Dividend Irrelevance
2.5
Implication of the Theories on
Dividend Decision
2.6
Practical Factors Determining
Dividend Policy
2.7
Concept of Capital Structure
2.8
Capital Structure Theories
2.8.1
Modigliani and Miller Approach to
Capital Structure
2.8.2
Durand View on the Effect of Capital
Structure On Firm's Value and Cost Of Capital
2.8.3
Traditional Approach
2.9
Recent Theories on Optimal Capital
Structure
2.10
Empirical Tests of Dividend Theories
Reference
CHAPTER
THREE RESEARCH METHODOLOGY
3.1
Introduction
3.2
Variable and Data Sources
3.3
Re- statement of Research Hypothesis
3.4
Sources of Data
3.5
Model Specification
3.6
Model Estimation Technique.
3.7
Analytical Techniques
3.8
Limitation of Methodology
CHAPTER
FOUR
PRESENTATION
AND ANALYSIS OF DATA
4.1
Introduction
4.2
Data Presentation
4.3
Empirical Result and Interpretation
4.4
Summary of Findings
4.5
The Implication of Findings
CHAPTER
FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1
Summary
5.2
Conclusion
5.3
Recommendations
Bibliography