Dividend Theory Controversies and Nigerian Firms

This study examined the endless arguments between dividend policy and firms’ value in Nigeria. This
study made use of 24 quoted companies selected from 10 sectors of Nigerian economy from firm’s
annual reports and accounts for the period of 2012-2017. The results found as follows; few numbers
of companies are paying high dividends, while the rest companies are paying very low or no dividends
that leverage firms are likely to pay lower dividends in Nigeria. It was also found earnings exerting
positive and significant influence on the firms’ value, whereas dividend per share insignificantly
impacts firms’ value. Therefore, firms are advised to improve on their operations by managing the
resources of their firms effectively and efficiently in order to increase earnings.