EFFECT OF TAXATION ON DIVIDEND POLICY OF QUOTED DEPOSITMONEY BANKS IN NIGERIA (2006-2015)
DOI:
https://doi.org/10.53555/eijbms.v3i1.22Keywords:
Taxation, Dividend Policy, Investment DecisionsAbstract
The study considers the effect of taxation on the dividend policy of banks in Nigeria. The study was set out to determinethe relationship between dividend and taxes and to find out whether taxes affect the dividends of the quoted deposit moneybanks in the Nigerian Stock Exchange from 2006 to 2015. Three specific objectives were derived. In pursuance of theobjectives of this study, ex-post facto research design was adopted. The study made use of secondary data obtained fromthe Nigeria Stock Exchange (NSE) publications, fact books, annual reports and account of the selected quoted banks. Therelevant data were subjected to statistical analysis using Pearson coefficient of correlation, and Ordinary Least Square
(OLS) regression. The result of this study reveals that there is a negative significant relationship between tax and dividendpolicy. More so, that tax has statistically significant effect on dividend policy of banks. This study recommends amongstothers, that management of banks should design a dividend policy that will better the lots of shareholders and maximize
the value of the bank.
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