Firm Characteristics and Dividend Policy of Quoted Manufacturing Firms in Sub-Sahara Africa

The study examined the effect of firm characteristics on dividend policy in quoted manufacturing firms in Sub-Sahara Africa. Panel data were obtained from twenty (20) quoted manufacturing firms from the Nigerian Stock Exchange, Ghana Stock Exchange, Lusaka Stock Exchange, Johannesburg Stock Exchange and Nairobi Stock Exchange over a period of ten (10) years (2008-2017). The data were analyzed using both descriptive and inferential statistics. Dividend payout ratio was used as a proxy for dividend policy, while liquidity, ownership structure, firm size and leverage were used as proxies for firm characteristics. The study found liquidity to have a positive insignificant impact on dividend payout ratio; a positive insignificant impact of ownership structure on dividend payout ratio; a positive insignificant impact of firm size on dividend payout ratio; a positive significant impact of leverage on dividend payout ratio and jointly, a positive significant impact. It was therefore recommended that manufacturing firms should practice optimum working capital management in order to increase its liquidity level and diminish any likelihood of financial distress. An efficient use of its resources in order to improve performance, profitability as well as its ability to pay dividends. Investors should look out for trends in dividend payments before making investments.