Abstract

This study is an assessment of the effect of three basic components of firm structure on dividend yield using ex-post facto research design. The sample of study was made up of 46 quoted manufacturing firms in Nigeria and the period of the study spanned from 2009 to 2020. The study utilized secondary data from the annual reports and accounts for the period of the study. The hypothesis for model estimation was subjected to empirical testing using panel data multiple regression. Findings showed that the size of a firm, its liquidity and leverage respectively have significant positive effect on dividend yield. Consequently, it was concluded that firm structure has significant positive effect on dividend yield of Nigerian quoted manufacturing firms. The implication of this finding is that the higher the investment of time and efforts on issues regarding firm structure composition by firms, is the higher the expected positive effect on dividend while lower attention or neglect of firm structure components is expected to also yield lower returns in the form of decreased dividend yield. The researchers hereby recommend that Companies in Nigeria should establish a company-based specific averages in to ensure good structure composition that best suits their particular level operations and ensure annual review of liquidity and leverage ratios as they have significant effect on their dividend yield which is a measure of return to owners.