Internal Drivers of Dividend Payout in Nigerian Quoted Manufacturing Companies

This study evaluated the internal drivers of dividend payout in Nigerian quoted manufacturing firms over the period of 2011 to 2019. The study employed secondary data gotten from annual financial reports of selected manufacturing firms and the Nigerian Stock Exchange Fact book. Dividend pay-out ratio served as the dependent variable whereas present net earnings per share, cost of floating new shares, financial leverage and liquidity served as the independent variables. The study employed the stationarity test which revealed the stationarity of the data at first difference. More so, panel regression using fixed effects model was employed as the Hausman test confirms it is more appropriate than the random effects model. The findings of the study evince that present net earnings per share, debt/equity ratio (leverage), flotation costs and liquidity showed significant influence on the dividend payout of the selected manufacturing firms in Nigeria. From the results of this study, we conclude that present net earnings per share, debt/equity ratio (leverage), flotation costs and liquidity are significant internal drivers of dividend payouts of quoted manufacturing firms in Nigeria. Therefore, the study recommends among others that manufacturing firms should ensure healthy, consistent and growing earnings so as to guarantee a stable and healthy profit margin. Manageable debt to equity ratio should be maintained to ensure financial flexibility as high debt levels can limit a company’s ability to pay dividends

TEST OF RANDOM WALK ON SELECTED STOCK MARKETS IN AFRICA

This study investigated the efficiency market theory in four (4) selected African stock markets (Nigeria, South Africa, Kenya and Morocco) proxied by their All-share indices from the perspective of random walk hypothesis using the variance ratio tests. Daily market returns data from 01/02/2012 to 26/03/2020 obtained from the individual national stock markets via their official websites was employed. The findings of the study evince that over the study period, the daily returns movement on Nigeria stock exchange All-share index is affected by historical price information; hence, Nigeria stock market follows the random walk pattern whereas the daily returns movement on South Africa FTSE-JSE stock exchange index, Kenya (Nairobi) stock exchange index and Morocco (Casablanca) stock exchange index are not affected by historical price information; hence, South Africa, Kenya and Morocco stock markets do not follow the random walk pattern. We therefore conclude that African stock markets are largely inefficient; hence, they are characterized by market anomalies and momentum effects implying that financial resources are not efficiently and effectively mobilized. Also, there is lack of evidence of weak form efficiency in African markets which also implies the existence of arbitrage opportunities which would lead to abnormal returns or profits if well exploited. From the findings of this study, we recommend amongst others that there is need for investors and traders in the African stock markets to exploit the existing arbitrage opportunities that are created by market anomalies in order to possibly beat the stock markets and earn abnormal returns. This can be achieved by using market trading strategies that are consistent with technical analysis such as day-of-the week momentum strategy

CREDIT RISK MANAGEMENT AND FINANCIAL PERFORMANCE: A STUDY OFSELECTED DEPOSIT MONEY BANKS IN NIGERIA

The study on the credit risk management and financial performance of deposit money banks in Nigeria, 2004 – 2022, aimed to understand the relationship between non-performing loans, total loans, bank’s capital as the independent variables and return on investments, return on equity as the dependent variables. Financial statement of five commercial banks in Nigeria were obtained between 2004 and 2022. Panel regression analysis was used to analyse the time series data. The analysis covered the descriptive analysis, unit root analysis, pooled regression analysis, random effect, fixed effects as well as hausman tests. The post estimation tests included serial correlation analysis and heteroskedasticity tests. The study found that non-performing loans, total loans have negative and significant relationship with ROE but positive and significant relationship with ROI. Bank capital was also found to have positive and significant relationship with financial performance of deposit money banks in Nigeria. The study recommended, amongst others, that deposit money banks must ensure that the loans they disburse perform and also, they should device efficient systems of monitoring their total loan disbursements