Ownership Structure and Value of Listed Manufacturing Companies in Nigeria Moderated By Dividend Pay-Out

Articles in Press

Document Type : Original Article

Authors

• John Eshemokhai Balogun ¹
• Adabenege Onipe Yahaya ¹
• Billy Festus Balogun ²

¹ Nigerian Defence Academy, Department of Accounting, P.M.B. 2109

² University of Benin

10.22067/ijaaf.2025.92840.1548

Abstract

This study examines ownership structures on the value of listed manufacturing companies in Nigeria, with dividend pay-out as a moderating variable. This study adopted the ex-post facto research design and panel data were collected from the financial statements of the sampled listed manufacturing companies. The population of this study are forty-six (46) companies from four sub-sectors (agricultural, consumer goods, health, and industrial goods), and thirty-five (35) were sampled from 2012 to 2023 from the Nigerian Exchange (NGX). Data were analysed using descriptive statistics and generalised method of moments (GMM) regression. The findings of the GMM result show that, while ownership structures and dividend pay-out have a positive influence on firm value independently, their interactions—specifically, managerial, institutional, and foreign ownership with dividends—show results that lessen their combined effect. These negative coefficients show the complex relationships between ownership structure and dividend pay-out in influencing firm value in Nigeria's manufacturing sector. This study recommends that management should cultivate the practice of regular payment of dividends, no matter how little, to institutional and foreign shareholders. However, beyond dividend payments to institutional and foreign owners, management should demonstrate strong business growth potentials through expansion, best corporate governance practices, and commitment to creating long-term value for shareholders.

Keywords

• Managerial Ownership
• Institutional Ownership
• Foreign Ownership
• Firm Value
• Dividend Payout

Main Subjects

• Accounting

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