ABSTRACT
The study explores the effect of
taxation on dividend policy of banks in Nigeria. It underscores various
assumptions on dividend and its policy. The study identifies how sometimes
companies find it difficult deciding on the particular dividend policy to adopt
when companies retain earnings for a long period without paying dividend The
main objective of this study is to determine the extent to which taxation
affect dividend policy of banks in Nigeria. The source of the study was
obtained using secondary data from the annual report of First Bank Nigeria Plc.
for period 2011 to 2015 financial year. The data of this study was analysed
using regression model. Based on the analysis and the empirical results the
study revealed that the estimated coefficient of the regression parameter have
a negative sign and thus conform to our a-priori expectation. The study
revealed an inverse relationship of the independent variable company income tax
(CIT) and the dependent variables dividend per share, dividend payout and
dividend yield. Based on the findings of this study, the study concluded that
dividend policy is a guideline or principle on which the management of every
firm bases the systematic distribution of their earnings or profit after tax to
their shareholders and investors. The research recommended that an adoption of
dividend policy by the banks particularly in Nigeria should be strictly
considered based on the unique circumstances of the bank and not necessarily
based on age long traditional factor often formulated by academics. This is
essential in order to maintain a steady and reasonable policy.
OKEREKE, C (2021). Effects Of Taxation On Dividend Policy Of Banks In Nigeria (A Study Of First Bank Of Nigeria). Mouau.afribary.org: Retrieved Nov 01, 2024, from https://repository.mouau.edu.ng/work/view/effects-of-taxation-on-dividend-policy-of-banks-in-nigeria-a-study-of-first-bank-of-nigeria-7-2
CHIMA, OKEREKE. "Effects Of Taxation On Dividend Policy Of Banks In Nigeria (A Study Of First Bank Of Nigeria)" Mouau.afribary.org. Mouau.afribary.org, 16 Jul. 2021, https://repository.mouau.edu.ng/work/view/effects-of-taxation-on-dividend-policy-of-banks-in-nigeria-a-study-of-first-bank-of-nigeria-7-2. Accessed 01 Nov. 2024.
CHIMA, OKEREKE. "Effects Of Taxation On Dividend Policy Of Banks In Nigeria (A Study Of First Bank Of Nigeria)". Mouau.afribary.org, Mouau.afribary.org, 16 Jul. 2021. Web. 01 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effects-of-taxation-on-dividend-policy-of-banks-in-nigeria-a-study-of-first-bank-of-nigeria-7-2 >.
CHIMA, OKEREKE. "Effects Of Taxation On Dividend Policy Of Banks In Nigeria (A Study Of First Bank Of Nigeria)" Mouau.afribary.org (2021). Accessed 01 Nov. 2024. https://repository.mouau.edu.ng/work/view/effects-of-taxation-on-dividend-policy-of-banks-in-nigeria-a-study-of-first-bank-of-nigeria-7-2