MODERATING EFFECT OF RISK COMMITTEE PRESENCE ON THE NEXUS BETWEEN CEO CHARACTERISTICS AND DIVIDEND POLICY: EVIDENCE FROM LISTED COMPANIES IN NIGERIA

ABDULWAHAB, Anas Idris
Department of Accounting
Faculty of Management Sciences
Kaduna State University, Nigeria
anasabdulwahab5@gmail.com
BALA, Hussaini
Department of Accounting
Faculty of Administrative Sciences and Economics
Tishk International University, Erbil, Kurdistan Region, Iraq
hussaini.bala@tiu.edu.iq
YAHAYA, Onipe Adabenege
Department of Accounting
Faculty of Management Sciences
Nigerian Defence Academy, Kaduna, Nigeria
yoadabenege@nda.edu.ng
KHATOON, Ghousia
Department of Accounting
Faculty of Administrative Sciences and Economics
Tishk International University, Erbil, Kurdistan Region, Iraq
ghousia.khatoon@tiu.edu.iq
ABSTRACT
This study investigated the moderating effect of risk committee presence on the nexus between CEO
characteristics and dividend policy of listed companies in Nigerian. 156 listed companies on the Nigerian
Exchange Group (NXG) and whose financial data are available on the floor from 2012-2021 comprised
the population of the study. Purposive sampling was used to arrive at 134 companies, which make up the
sample size of this study. Fixed effects regression technique was used for data analysis. According to the
findings of the direct model, COE tenure, turnover, risk committee presence and audit committee
independence all contribute significantly to dividend policy; while whistle blowing policy and board size
had statistically insignificant contribution to dividend policy. The study also found that risk committee
presence moderate on the relationship between CEO duality and dividend policy of listed companies in
Nigeria. Also, risk committee presence establishes the fact that during their longer tenure, CEOs shift
focus on consolidating their powers, and failed to grow the firms surveyed. In terms of policies, CEO
tenure, duality and turnover should be strengthened. Finally, the Nigeria’s regulatory authorities should
ensure stringent compliance with best practice by establishing risk committees. Regulatory authorities
should also implement policies on whistle blowing in order to prevent any form of undue punishment.
Keywords: Audit committee independence, board size, dividend policy, risk committee presence