Abstract
This research investigated how managerial overconfidence impacts dividend policy among the oil and gas companies in the Nigerian Exchange Group. The specific goal that was met was to assess whether managerial overconfidence, in conjunction with the firm size, leverage, and liquidity had a significant impact on the dividend payout ratio during the period considered. The research design adopted was ex-post facto based on secondary data of ten purposively selected oil and gas companies comprising 2014-2023. The formulated model was tested by using panel regression analysis where the dependent variable was dividend payout ratio and the independent variables was managerial overconfidence while firm size, leverage and liquidity were control variables. The results showed that the impact of managerial overconfidence on dividend payout was negative and significant (coefficient = -262.18; p = 0.036), whereas the positive impact of the firm size was significant (coefficient = 130.42; p = 0.034). Leverage (p = 0.582) as well as liquidity (p = 0.151) were not significant. The regression model indicated that R-Square = 0.662, adjusted R2 = 0.594, and F-statistic = 2.37 with probability = 0.025, which means that the overall model is significant. The paper concluded that overconfidence of managers and firm size were all important in determining dividend policy in the Nigerian oil and gas companies, but leverage and liquidity were not decisive factors.
Citations
IRE Journals:
Quadri Adebayo Lawal , Jumoke Elizabeth Jimoh
"Managerial Overconfidence and Divided Policy in Oil And Gas Quoted Companies in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 3 2025 Page 1796-1804
IEEE:
Quadri Adebayo Lawal , Jumoke Elizabeth Jimoh
"Managerial Overconfidence and Divided Policy in Oil And Gas Quoted Companies in Nigeria" Iconic Research And Engineering Journals, 9(3)
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