EFFECT OF MANAGERIAL OWNERSHIP AND INDEPENDENT DIRECTORS ON DIVIDEND PAYOUT OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Firms payout a proportion of their profits as dividends, despite their high-risk profile, poor financial position, and high rate of debt structure, which has necessitated this study to examine the effect of managerial ownership and independent directors on dividend payout of listed consumer goods firms in Nigeria.

The study employed panel data that is extracted from the annual reports and accounts of sampled firms. The population of the study is twenty-one (21), and the sample size is sixteen (16) listed consumer goods firms from 2010 to 2021. The study adopted a purposive sampling technique because the sampled firms were based on the availability of data. The robust Ordinary Least Squares is used for the study. The regression models were adopted for the study to correct for heteroskedasticity.

The findings of the study revealed that managerial ownership has a negative and significant effect on dividend payout. However, the independent directors are found to have a positive and insignificant effect on dividend payout. Similarly, the control variable of leverage has an insignificant positive effect on dividend payout.

Based on the findings of the study, it is suggested that the study firms should consider implementing oversight mechanisms such as stronger board independence or dividend policies that balance managerial discretion with shareholder expectations. Regulators and investors may also need to monitor firms with high managerial ownership to ensure that retained earnings are reinvested productively and not used for managerial entrenchment.