INTELLECTUAL CAPITAL AND DIVIDEND POLICY FORMULATION: EVIDENCE FROM NIGERIA’S NON-FINANCIAL FIRMS

ADENLE, Oluwatimileyin Esther
Department of Accounting
Osun State, University, Osun State, Osogbo
oluwatimileyinadenle@uniosun.edu.ng
ADEOYE, Lukmon Adewale
Department of Accounting
Osun State, University, Osun State, Osogbo
mailwaleadeoye1@gmail.com
ADAMU, Danjuma
Department of Accountancy
School of Business and Management Studies
Federal Polytechnic Ede, Osun State.
danjumaadamu007@gmail.com
MBAH, Fatimo Imike
Bursary Department
Fountain University, Osogbo, Osun State
mbahfatima@gmail.com
ABSTRACT
Intellectual capital is relevant to performance and value creation of companies. The role of intellectual
capital on dividend policy formulation is crucial. This study assessed the influence of intellectual capital
on dividend policy formulation of listed non-financial firms in Nigeria within a range of 7 years (2013-
2019). The study utilized descriptive research design. The population comprised 112 listed non-financial
firms while the sample frame is 36 listed non-financial firms. Descriptive statistics, correlation analysis
and panel ordinary least square regression were employed for data analysis. The study found that
intellectual capital has significant positive influence on dividend policy formulation in the studied
population, as evidenced by the estimated coefficient of 0.137 and p value of 0.003. The study concludes
that investment in intellectual capital is a strategic choice firms can use to influence the valuation of their
firms which will in turns lead to higher dividend payout. The study recommends that non-financial firms
should invest more on intellectual capital because it has the tendency to bring about improved dividend
policy formulation.
Keywords: Dividend policy formulation, dividend payout, intellectual capital, structural capital