THE IMPACT OF BOARD CHARACTERISTICS ON DIVIDEND POLICY OF LISTED CONSUMER GOODS FIRM IN NIGERIA

Abstract

This study examines the impact of board characteristics on dividend policy of listed consumer goods firms in Nigeria using a correlational research design. The population consist of twenty-one (21) listed consumer goods firms in Nigeria. The study using a simple random sampling technique, selected 10 listed consumer goods firms as the sample size of the study using taro Yamane sampling technique. Data were sourced from listed consumer goods firms annual report and account for over five (5) year’s period and analyzed using descriptive and inferential statistical methods. The findings revealed that board independence has a positive and statistically significant influence on dividend policy. Conversely, board gender diversity exhibits a negative and significant effect on dividend payouts. Similarly, board expertise demonstrates a strong negative relationship with dividend payments. This concludes that board characteristics significantly affect dividend policy of consumer goods firms in Nigeria. The study recommends that consumer goods firms should strengthen the proportion of independent directors on their boards, as this governance structure is positively linked to dividend payouts and can enhance shareholder value. Also, while encouraging gender diversity is essential for inclusivity and diverse perspectives, boards should ensure that dividend policies align with shareholder expectations by balancing conservative financial management with adequate returns.