OWNERSHIP STRUCTURE, FREE CASH FLOW AND DIVIDEND POLICY OF LISTED CONSUMER GOODS COMPANIES IN NIGERIA

Abstract

This study investigated how ownership structure, free cash flow, and dividend policy influence the performance of listed consumer goods companies in Nigeria over a thirteen-year period from 2012 to 2024. An ex-post facto research design was adopted, relying entirely on secondary data obtained from seventeen (17) out of the twenty-one (21) consumer goods firms listed on the Nigerian Exchange Group as of 31 December 2024. The analysis employed multiple regression techniques alongside descriptive statistics and Spearman correlation.The findings show that managerial ownership (MO) and institutional ownership (IO) each exert a significant positive effect on the dividend payments of listed consumer goods firms. Free cash flow (FCF) also demonstrates a significant effect, though in a negative direction, indicating that higher free cash flow is associated with lower dividend payouts within the sector. However, ownership concentration (OC) was found to have a positive but statistically insignificant influence on dividend payout, suggesting that concentrated shareholding does not meaningfully shape dividend decisions among these companies.Based on these results, the study concludes that ownership structure particularly managerial and institutional ownership as well as free cash flow meaningfully affect dividend payment behaviour, whereas ownership concentration does not. Consequently, the study recommends that consumer goods firms strengthen managerial and institutional equity holdings and enhance free cash flow management in ways that align managerial interests with the overall goals of the firm while reducing the gap between ownership and control through lower levels of concentrated shareholding.