Citation:

Hauwa Modu Kumshe, Kabiru Musa Yakubu, Ali Dalha Haruna. "Effect of Liquidity and Stock Price on Dividend Payout of Listed Deposit Money Banks in Nigeria" International Research Journal of Economics and Management Studies, Vol. 3, No. 8, pp. 174-179, 2024.

Abstract:

This study examined the effect of liquidity and stock price on the dividend payout of listed DMBs in Nigeria. Based on the requirements that the bank must have been listed prior to December 31, 2019, and possess comprehensive annual reports covering a five-year period (2019–2023), 11 banks were purposefully chosen as a sample. The data was analyzed using panel regression analysis and descriptive statistics, and the study's findings showed that the current ratio significantly and favorably affects the dividend distribution of Nigeria's listed DMBs. However, when the stock price was introduced as a moderator, the result shows that both the current ratio and cash flow have a positive and significant effect on the dividend payout of the banks. Therefore, with the goal of improving dividend payout, this study advises the management of listed DMBs in Nigeria to decrease current liability and boost debtor gathering, cash at the bank, and stock price.

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Keywords:

Deposit Money Banks, Dividend Payout, Liquidity, Nigeria, Stock Price.