SADIQ, I. A and Durowaiye, Oluwatobiloba Oreoluwa (2023) Company Income Tax and Dividend Policy of Nigerian Deposit Money Banks. Journal of Management and Technology, 8 (1). pp. 1-11.
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Abstract
With reference to two (2) listed deposit money banks in Nigeria (United Bank for Africa and First Bank Nigeria Plc.), the study evaluated the impact of company income tax on dividend policy. Through the extraction and computation of pertinent data from the Annual Report and Accounts of the chosen Deposit Money Banks under consideration, the study used secondary sources of data. The study spans a fifteen-year period, from 2006 to 2020. In order to assess the dividend policy of the banks under investigation, the dividend payout ratio, dividend per share, and dividend yield were employed. Corporate tax was used to assess company income tax. To ascertain if the collected data are normally distributed or not, a normality test was carried out using the Kolmogorov-Smirnov and Shapiro-Wilk tests. The results of the normality test reveal that while the data on dividend payout ratio, dividend per share, and dividend yield are normally distributed, the data on corporation tax are not. Additionally, numerous regressions, correlations, and descriptive statistics were employed to analyze the data. The results showed that company income tax has a significant influence on the dividend payout ratio of the chosen deposit money banks in Nigeria, as well as on dividend per share and dividend yield. However, company income tax has no significant influence on the dividend yield of the chosen deposit money banks in Nigeria. The report advises bank management to implement sound dividend payout practices that will cut agency costs, increase the company's worth, and draw in additional investors.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > H Social Sciences (General) |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Unnamed user with email [email protected] |
| Date Deposited: | 01 Nov 2024 11:29 |
| Last Modified: | 01 Nov 2024 11:29 |
| URI: | http://eprints.federalpolyilaro.edu.ng/id/eprint/2366 |
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