Board size, independence and dividend policy in Nigeria

Abstract Using a sample of 1,120 firm year observations over the 2012-2021 period, we provide the first evidence on the impact of board of directors on dividend policy in Nigeria. Board of directors was measured by board size and board independence, while dividend policy was measured by dividend paid per share. Using Ordinary Least Squares (OLS) Method, we find that board size and board independence have significant effects on listed firms dividend policy. In Nigeria. Consistent with the agency theory and signaling hypotheses, we find that this result is more pronounced in firms with long years of experience of listing and huge size. This study points to a promising direction for future research to gain a deeper understanding of how the board of directors affects corporate policies and behaviour. However, the study is limited by the number of samples, specifically 112 listed firms. It is expected that further research can increase the total sample of companies and also by adding to the research period or using all companies. Our study results show that the R² square value is 49.3 percent, meaning that there is room for improvement in the model of the study. Further research is expected to add other board of directors proxies that may influence the decisions made in a company such as board gender diversity, and board shares ownership.