Moderating Role of Financial Constraints on the Relationship between Dividend Policy and Firm Performance of Oil and Gas Companies in Nigeria (2019-2023)

Authors

  • Suleiman Ibrahim Abdulrazaq Department of Business Administration, University of Maiduguri, Borno State, Nigeria
  • Aminu Ibrahim Murtala Department of Business Administration and Entrepreneurship, Bayero University, Kano, Nigeria

Keywords:

Financial Constraints, Dividends Policy, Firm Performance, Consumer Goods Companies, Nigeria

Abstract

Good company performance benefits workers, communities, customers, and funds suppliers. Control and coordination
between ownership and management are essential for company performance. In Nigeria, most companies employ low
payout strategies to maintain shareholder interest. Dividend payouts can lead a company's financial performance,
with high payouts leading to slower growth and lower market prices, likewise, financial constraints lead to firm
performance. This research aims to propose a framework for the moderating effect of financial constraints on the
relationship between dividend policy and firm financial performance. The study employs an exploratory research
method using a desktop review to develop persuasive arguments for the topic under investigation. As a result, the
study proposed a conceptual framework for the relationships between the variables under study, which will help in
carrying out further studies and in making decisions about dividend policy and firm performance that possible
financial constraints may hamper.

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Published

2025-05-03

Issue

Vol. 2 No. 1 (2024): JANUARY

Section

Articles