EFFECT OF CORPORATE GOVERNANCE ATTRIBUTES ON DIVIDEND DECISION OF LISTED INSURANCE FIRMS IN NIGERIA

Abstract

This study examined effect of corporate governance attributed on dividend decision of listed insurance firms in Nigeria. The study adopted ex-post factor research design and population of the study comprised of 22 listed insurance firms on the Nigeria exchange Group (NGX). Secondary data was extracted from the annual report of sample listed insurance firms between the period of 2011 to 2021. Hausman test was used to decide between random effect model and fixed effect model while the result of the test showed that fixed effect is the model that fit the study. The fixed effect result showed that managerial ownership has negative effect on dividend and is significant. The result revealed that board member financial expertise exhibits positive effect on dividend decision and is significant. Also, the result revealed that institutional ownership has insignificant positive effect on dividend and board size exhibit positive effect on dividend decision and statistically significant. In addition, the result showed that both independent non-executive director and board gender diversity have positive effect on dividend decision but insignificant. It was concluded that corporate governance attribute has significant effect on dividend decision of listed insurance firms in Nigeria. Therefore, it was recommended that policy maker on corporate governance such as security and exchange commission (SEC) should increase female director on the board of listed insurance firms and ensure that independent non-executive director appointment should be transparent with financial expert background in accounting and finance in other to achieve a significant contribution toward dividend decision of listed insurance firms in Nigeria.