Noble International Journal of Economics and Financial Research


Online ISSN: 2519-9730 | Print ISSN: 2523-0565

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    Volume 6 Number 4 June 2021

Managerial Ownership and Firm Value of Selected Nigeria Listed Manufacturing Companies: Does Dividend Payment Policy Really Mediate?

Pages: 78-90
Authors: FALADE, AbidemiOlufemiOlusegun*,NEJO, Femi Michael,GBEMIGUN, Catherine Omoleye
Abstract
Shareholders play a vital role in an organization through parting with their funds which determines the continuity and survival of the organization. As a result of this, regular payment of dividends as at when due to different shareholders is a concerned of every stakeholder in an organization. Therefore, this study examined the mediating effect of dividend payment policy on the relationship between managerial ownership and firm value of listed manufacturing companies in Nigeria. This study focused on ten manufacturing firms that are listed on Nigeria Stock Exchange (NSE) from 2010 to 2019 using panel pool technique and Hausman’s test. The findings from this study established that there was a partial mediation of managerial ownership, dividend payout and leverage ratio on firm value. In addition, managerial ownership (20.8%) had an inverse and significant effect on firm value; while, dividend payout ratio and leverage ratio had a direct and significant effect on it with each contributing 15.2% and 3.8% to it respectively. On mediation, the finding discovered that dividend payout through managerial ownership indirectly contributed 33.1% to managerial ownership. The study concluded that managerial ownership and dividend payment policy partly contributed to firm value with dividend payment policy playing an indirect role through increase in managerial ownership. Therefore, recommended that organizations should endeavor to review their dividend payment policy and ensure that dividend accrue to the firms’ coffer are pay as at when due. Also, managers of listed firms are strongly advised to take more of long-term loan on intending capital projects.

Effect of Government Infrastructure Expenditure on Poverty in the East African Community

Pages: 71-77
Authors: Phoebe Mshai Mwasagua, Dr. Alphonce Juma Odondo*, Dr. Destaings Nyongesa
Abstract
The East African Community (EAC) level of economic integration is among the most advanced Regional Economic Communities (RECs) in Africa. With advancement in integration, efforts are being made by the member countries to have collective decision making on fiscal policies with the view of addressing poverty situation among other economic factors.  However, while economic theory indicates that increased government expenditure leads to reduced poverty, empirical literature pits conflicting results. The difference in opinions poses lack of predictability of public finance decision making as to whether a perceptible relationship exists between public expenditure on infrastructure and poverty. This study thus, assessed the effect of government expenditure on infrastructure and poverty in EAC. Poverty was measured by private consumption per capita. The study was anchored on the Ferroni and Kaburi resource allocation framework. Correlational research design was adopted in the study. The analysis span between 2007 and 2018. The study used data drawn from five countries, namely, Burundi, Kenya, Rwanda, Tanzania and Uganda. Panel data analysis was employed to interrogate the study topic. The Random Effects Model was used to estimate the relationship after converting the log transformed data to stationary series. The results indicated that Government expenditure on infrastructure was significant in lowering poverty (?2=0.1577; p=0.0000). Thus, the need to enhance allocation and expenditure on infrastructure to arrest poverty. The findings may be beneficial to policymakers, strategists, government and advocacy groups.

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