CORPORATE SOCIAL RESPONSIBILITY AND DIVIDEND POLICY IN NIGERIA
Abstract
The study examined Nigeria's dividend policy and corporate social responsibility. The study's goals were to explore the significant effect of employee relations on the dividend payout ratios of manufacturing firms in Nigeria, to find the significant effect of community engagement on the dividend payout ratio of Nigerian manufacturing firms, and to examine the significant effects of environmental sustainability on the dividend payout ratio of manufacturing firms in Nigeria. Utilizing stratified random sampling methods, information for five years from 2018 to 2022 were gathered from 10 manufacturing companies listed on the Nigerian Exchange Group. To evaluate the variables utilized in the research, the study used regression analysis, unit root test, correlation matrix, and descriptive statistics. The outcome showed that the Environmental Sustainability (ES) coefficient value of 0.579 is positive, indicating that if ES increases by one, the DPR would also rise by that same amount. Employee Relations (ER) has a negative coefficient value of -0.948, indicating that if ER increases by one, the DPR will decrease by the same amount. Last but not least, Community Engagement (CE) has a negative coefficient value of -0.0098, indicating that if CE increases by one, the DPR would decrease by the same amount. The study concluded that high levels of environmental and social transparency are associated with greater corporate payments and that these businesses tend to have more stable dividend payouts than those with low levels of environmental and social transparency. It is advised that businesses interact with their customers, workers, shareholders, and local communities to learn about their objectives and expectations for CSR and dividend policy. A sense of ownership and alignment of expectations are fostered by strong stakeholder involvement, which makes it easier to integrate CSR and dividend policy.
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