AN ASSESSMENT OF CORPORATIVE PERFORMANCE VARIABLES THAT DETERMINE DIVIDEND PAYOUT POLICIES OF MANUFACTURING INDUSTRIES IN NIGERIA

Abstract: In this research titled corporate performance variables that determines dividend payout policies of companies in Nigerian. The researcher examined the relationship between earnings per share and dividend per share of Nigerian companies. Evaluated the relationship between firm size and dividend payout ratio of Nigerian companies. Examined  the relationship between return on asset and dividend per share of Nigerian companies. Data for the study was sourced through the annual report of the selected brewery companies (Nigeria Brewery Plc, Guinness Nig. Plc and Champions Brewery plc ) and journal articles related to the subjects matter. Eview was used in the data analysis. The result revealed that the maximum values of these series are 0.700000, 1.740000, 1.90E +09 and 0.990000 for dividend per share (DPS), Earnings per share (EPS), firm size and return on assets (ROS) respectively. The minimum values are 0.200000, 0.060000, 1.92E +08 and 0.150000 dividend per share (DPS) Earnings per share, firms size and return on assets respectively. Dividend per share and return assets have kurtosis coefficient of 3.880333 and 1.722689 respectively which are seriously out of range of normality. Dividend per share, earning per share firm size and return of assets (ROA) have reported significant probability Values 0.266546 and 0.812933 respectively while earnings per share and firm size have p-value of 0.66173 and 0.763668 respectively, for Jarque-Bera statistics. The researcher also observed that there is insignificant relationship between earnings per share dividend per share of Nigerian Brewery firms. It was also observed that there is no insignificant relationship between firm size and dividend payout ratio of Nigerian companies. The study equally observed that return on asset has insignificant effect on dividend per share of Nigerian companies.  Based on the findings the researcher recommends that organizations should ensure that they have a good and robust dividend policy in place. This will enhance their profitability and attract investments to the organizations. Directors of corporate organizations should be made to update the records of shareholders including their next-of-kin to avoid a deliberate diversion or undue retention of unclaimed dividend warrants. Due procedures for the recognition and utilization of profit arising from investment of unclaimed dividend should be effected and properly accounted for.  A more stringent level condition should be established to compel directors to only invest in profitable ventures, report the utilization of retention earnings through notes to the accounts.