IMPACT OF BOARD CHRACTERISTCS ON DIVIDEND POLICY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

Abstract

This study examines the impact of board characteristics on the dividend policy of listed consumer goods firms in Nigeria. Motivated by persistent economic and regulatory challenges in the Nigerian consumer goods sector and by empirical, methodological and geographical gaps in the literature, the study investigates the effects of board independence, board size and board gender diversity on dividend policy, while controlling for firm size and firm age. The population comprised all 21 consumer goods firms listed on the Nigerian Exchange Group (NGX), and secondary data were sourced from the firms’ annual reports and accounts, yielding 123 firm-year observations over a period of 13 years (2013 to 2025) extending to 2025. Dividend policy was proxied by dividend per share (DPS), and the data were analysed using descriptive statistics and robust ordinary least squares (OLS) regression. The results show that board independence has a positive but statistically insignificant effect on dividend policy, whereas board size and board gender diversity each exert a significant negative effect. Firm size is a significant positive determinant of dividend policy, while firm age is a significant negative determinant. The study concludes that internal governance structures, particularly board size and gender composition, play a meaningful role in shaping dividend decisions, consistent with agency and free cash flow theories. It recommends that firms maintain an optimal board size, that regulators strengthen the substantive independence and effectiveness of non-executive directors, and that investors interpret lower dividends in gender-diverse firms as a reflection of prudent, long-term financial management rather than weak performance.