# Impact of capital structure and dividend

## Capital structure and dividend policy on corporate strategy

This means that an increase in leverage might be as a result of increase in dividend pay-out ratio. The data will be extracted from the audited financial reports of the Unilever Nigeria Plc. It covers a period from to and the source of data for this study is secondary. Myers and Bacon referred to the importance of dividend cash flow as a signalling device to shareholders. A system based program known as E- Views Econometrics views was used for the statistical analysis of the data. A system based program known as E-Views Econometrics views has been adopted for the econometric and statistical analysis of the data. The study used a Tobit Regression model. He makes the following assumptions in his model: i. Researcher examines the impact of the financial leverage, combined leverage and the operating leverage on the earning per share of the firms. In Corporate Finance 6th ed. No attempt is made to arrive at the magnitude of the effect on common stock price. The null hypothesis is of no serial correlation. It was also evident in their sample that even with high growth the firm is willing to increase debt to fund increasing dividends. Table: 4: Test for Autocorrelation F-statistic 1.

Residual Dividend Policy: The term residual dividend refers to a method of calculating dividends. A correlational research design is used to describe the statistical association between two or more variables.

This shows that there is very strong relationship between the explained and explanatory variables. Dividend Policy and Stock Value: Dividend Irrelevance Theory: This theory purports that a firm's dividend policy has no effect on either its value or its cost of capital.

The rationale behind this is to use the evidence from the studies to uncover gaps in the literature and to serve as a point of references of the findings of this research. This brief definition lends its self for review considering the fact that it emphasis on specific proportion of debt and equity used for financing organisations.

White test was used to test for the presence of Heteroscedasticity.

The mean of dividend pay-out ratio DPR was

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