Assessment of Lifecycle Theory on the Propensity to Pay Dividend of Listed Manufacturing Firms in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.2(2)2021.011Keywords:
Lifecycle theory, Dividend Policy, Retained Earnings to Equity, Retain Earnings to Asset and Firm SizeAbstract
This study examines the effect of the lifecycle theory on the dividend policy of listed manufacturing firms in Nigeria for the period of five (5) years spanning from 2015 to 2019. The study used a sample of twenty-four listed firms and Logistic regression was employed in the analysis of the data. The results of the study reveals that lifecycle have a positive relationship on the propensity to pay dividend in Nigeria. Based on the findings, it is recommended that the management should consider the lifecycle of their firms when making dividend decision and financing decision.
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