STABLE DIVIDEND POLICY AND VALUE OF LISTED HEALTHCARE FIRMS IN NIGERIA

Abstract

This paper examines the effect of stable dividend policy on the value of listed healthcare firms in Nigeria. The study used correlation research design and utilized secondary data collected from the annual reports and accounts of the sampled companies for a period of 13 years (2008-2020). The population of the study constitutes all the ten (10) listed healthcare firms in Nigeria out of which a sample of eight (8) healthcare firms was drawn. The data were analyzed using descriptive statistics, correlation and regression analysis. Robustness tests were conducted to validate the result. The finding of the study reveals that stable dividend policy has significant positive effect on firm value. Therefore, the study concludes that, accordance with the dividend relevance theory, stable dividend policy of listed Nigerian healthcare firms influences their value. The study recommends that for an increased in firm value, listed healthcare firms in Nigeria should stabilize their dividend policy.

Keywords

• Stable Dividend Policy
• Return on Equity
• Size and Firm Value