BOARD INCLUSION IN FINANCIAL REPORTING AND DIVIDEND POLICY: EVIDENCE FROM STATIC AND DYNAMIC PANEL VAR MODELS
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Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oum El Bouaghi
Abstract
The study explored how board inclusion in financial reporting affects the
dividend policy in Nigeria. The study was conducted within the context of
deposit money banks (DMBs) and data were gathered from the financial
statement of listed DMBs in Nigeria for ten years spanning from 2008 to
2017. The study employed static and dynamic panel VAR technique. The
result showed that dividend per share can predicts frequency of the board
meeting, the frequency of board meeting can predicts board compliance to
banks' rules and regulation in the future and board compliance to banks'
rules and regulation can predict dividend per share. The study concluded
that board inclusion in financial reporting on dividend policy exerts longrun
and short run negative effect on dividend policy. In view of this study
recommended that the board inclusion in financial reporting should aim
at discouraging manipulative accounting tendencies and enhance true
fare of financial position of the banks with the goal of improving or
maximising dividend policy represented by the amount of cash pay-out as
dividend to shareholders as a form of reward for their investments.
Description
Keywords
Board inclusion in financial reporting, dividend per share, Deposit money banks