Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market
This paper examines the impact of the global financial crisis on Nigerian listed firms' dividend policies.Our findings indicate that firms adjust their dividend policies in a manner consistent with the need to preserve financial flexibility and mitigate going concern risks during the crisis pe...
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my.uum.repo.160622016-04-12T04:50:36Z http://repo.uum.edu.my/16062/ Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market Abdulkadir, Rihanat Idowu Abdullah, Nur Adiana Hiau Wong, Woei Chyuan HG Finance This paper examines the impact of the global financial crisis on Nigerian listed firms' dividend policies.Our findings indicate that firms adjust their dividend policies in a manner consistent with the need to preserve financial flexibility and mitigate going concern risks during the crisis period.Specifically, highly leveraged firms and firms with low cash flows are more likely to omit dividend payments during the crisis.Moreover, the negative effects of foreign ownership on dividend payments during the pre-crisis are muted during the crisis. This suggests that the tax-induced clientele effect became irrelevant as cash dividends became the first order of business for foreign investors during the crisis.In the same vein, prevailing investor demand for cash dividends exerts a positive influence on firms' probability to increase dividends during the crisis, implying that markets attach a high valuation to firms that are able to pay during the crisis period.We also find support for past dividends as a reference point for current dividend decisions in both the crisis and non-crisis periods, although the relation is weakened during the crisis.This implies that some managers strive to maintain stable dividends during the crisis period.Nevertheless, their ability to do so weakens during this period. Universiti Sains Malaysia 2015 Article PeerReviewed application/pdf en http://repo.uum.edu.my/16062/1/3.pdf Abdulkadir, Rihanat Idowu and Abdullah, Nur Adiana Hiau and Wong, Woei Chyuan (2015) Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market. Asian Academy of Management Journal of Accounting and Finance, 11 (2). pp. 103-126. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/vol11_2_2015.html |
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HG Finance Abdulkadir, Rihanat Idowu Abdullah, Nur Adiana Hiau Wong, Woei Chyuan Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
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This paper examines the impact of the global financial crisis on Nigerian listed firms'
dividend policies.Our findings indicate that firms adjust their dividend policies in a manner consistent with the need to preserve financial flexibility and mitigate going concern risks during the crisis period.Specifically, highly leveraged firms and firms with low cash flows are more likely to omit dividend payments during the crisis.Moreover, the negative effects of foreign ownership on dividend payments during the pre-crisis are muted during the crisis. This suggests that the tax-induced clientele effect became
irrelevant as cash dividends became the first order of business for foreign investors during the crisis.In the same vein, prevailing investor demand for cash dividends exerts a positive influence on firms' probability to increase dividends during the crisis, implying that markets attach a high valuation to firms that are able to pay during the crisis period.We also find support for past dividends as a reference point for current dividend decisions in both the crisis and non-crisis periods, although the relation is weakened during the crisis.This implies that some managers strive to maintain stable dividends
during the crisis period.Nevertheless, their ability to do so weakens during this period. |
format |
Article |
author |
Abdulkadir, Rihanat Idowu Abdullah, Nur Adiana Hiau Wong, Woei Chyuan |
author_facet |
Abdulkadir, Rihanat Idowu Abdullah, Nur Adiana Hiau Wong, Woei Chyuan |
author_sort |
Abdulkadir, Rihanat Idowu |
title |
Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
title_short |
Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
title_full |
Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
title_fullStr |
Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
title_full_unstemmed |
Dividend policy changes in the pre-, mid-, and post-financial crisis: Evidence from the Nigerian stock market |
title_sort |
dividend policy changes in the pre-, mid-, and post-financial crisis: evidence from the nigerian stock market |
publisher |
Universiti Sains Malaysia |
publishDate |
2015 |
url |
http://repo.uum.edu.my/16062/1/3.pdf http://repo.uum.edu.my/16062/ http://web.usm.my/journal/aamjaf/vol11_2_2015.html |
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