IMPACT OF DIVIDEND POLICY ON FIRM VALUE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Dividend policy is one of the most debatable issues in finance and management due to its sensitive nature to the firm and its stakeholders. The goal of corporate entities is to maximize the value of shareholders’ investment in the firm. Managers pursue this goal through their investment, financing and dividend decisions. The study focused on examining the impact of dividend policy on firm value of Listed Deposits Money Banks in Nigeria. The study was guided by the objectives which examined the relationship between dividend yield and firm value of deposit money banks in Nigeria, assessed the relationship between dividend payout ratio and firm value of deposit money banks in Nigeria, and also assessed the relationship between dividend per share and firm value of deposit money banks in Nigeria. The study adopted the qualitative research design, specifically the use of secondary data to determine the relationship among variables. The six year (2018 to 2023) time series dataset was obtained from the Central Bank of Nigeria (CBN) statistical bulletin. The secondary data used were from all the selected listed deposits money banks in Nigeria. The study used regression techniques for data analysis. The study found that all explanatory variables employed by the study have positive and statistically significant on firm value of listed DBMs in Nigeria. The study therefore, recommends that the bank management should adopt a dividend policy that ensures a competitive and sustainable dividend yield. This can be achieved by aligning dividend payments with profitability and long-term value creation, while ensuring that dividend decisions reflect the bank’s underlying financial strength. Regulators and supervisory bodies like CBN and SEC should encourage transparency in dividend declarations to help investors make informed decisions, thereby improving market confidence and firm valuation