DIVIDEND POLICY AND CORPORATE GOVERNANCE REGULATION AND PRACTICE IN NIGERIAN BANKS

Adegbola Olubukola Otekunrin, Tony Ikechukwu Nwanji, Roselyn Efenudu Hermans, Samuel Abiodun Ajayi, Frank Dayo, Awonusi, Adebanjo Joseph Falaye, Damilola Felix Eluyela

Department of Accounting and Finance,

Landmark University, Omu-Aran, Kwara State, Nigeria:

Email:  otekunrin.adegbola@lmu.edu.ng, nwanji.tony@lmu.edu.ng, awonusi.frank@lmu.edu.ng, falaye.adebanjo@lmu.edu.ng, eluyela.damilola@lmu.edu.ng

ABSTRACT

This research examines impact of corporate governance regulation and practice on dividend policy using case study of First and Zenith Bank. The objective of this research is to examine, investigate and evaluate if and how corporate governance regulation and practice affect or influence dividend policy in banks. This research adopted a mixed method approach that is using both qualitative and quantitative approach. The research instruments used in data analyses were descriptive analyses, chi-square and multiple linear regressions. The findings in this research were; corporate governance regulation and practice has impact on dividend policy, non-executive directors are very essential in dividend policy decisions as to whether they pay or do not pay dividends, that corporate governance disclosure, board size and size of executive directors are major contributors to the dividend policy adopted and that dividend payments can be used as a corporate governance measure to reduce agency cost. This research revalidates and supports the use of agency theory that major studies regarding corporate governance support. This research also supports that corporate governance regulation and practice have impact on dividend policy. This research shows that Nigeria can rely on the details in this research.

Keywords: Dividend, Policy, Corporate, Governance, Regulation