Manager's Perception of Factors Influencing Dividends Decision in Nigeria

Abstract

Dividends decision constitutes one of the most crucial business decisions as it affects the organization’s value and shareholders’ wealth. This study examines the opinions of managers on factors influencing dividends decision in Nigerian listed firms. The study employs survey research design and obtained primary data from selected managers through the administration of questionnaire. The result of the study reveals that pattern of past dividends, level of current earnings, current degree of financial leverage, availability of alternative source of capital; liquidity constraints such as availability of cash, growth and investment opportunities have significant influence on dividend decisions in Nigeria. The study recommends that future researchers should investigate the relationship between dividend payment and firms’ value.