OWNERSHIP STRUCTURE AND DIVIDEND POLICY OF LISTED OIL AND GAS COMPANIES IN NIGERIA

Abstract

The study examines the effect of ownership structure on dividend policy of listed oil and gas companies in Nigeria. The independent variable was proxied using managerial ownership, government ownership and foreign ownership. On the other hand, dividend policy was proxied by dividend payout ratio. The study employed the ex-post facto research design in analyzing the panel data collected from eight (8) oil and gas companies sampled from a total population of twelve companies listed on the Nigerian Exchange Group (NGX). the study covered a period of ten years (2013 to 2022) while the purposive sampling technique was employed. The multiple regression technique of analysis was employed in analyzing the data and the results of the analysis revealed a positive and significant relationship between Managerial Ownership and Dividend policy. Thus, suggesting that, an increase in the proportion of shares held by management would results in increased dividend payment. On the contrary, government ownership and foreign ownership had no significant effect on dividend policy of listed oil and gas companies in Nigeria. The study therefore concludes that, managerial ownership would influence dividend payment. Hence it is recommended that, managerial ownership of oil and gas companies be monitored by regulatory agency to ensure compliance with relevant codes and provision.