FINANCIAL REPORTING REGULATION AND DIVIDEND PAYOUT: MODERATING EFFECT OF INFORMATION ASYMMETRY
Aliyu Idris Said , Ibrahim Adamu and Mahmud Nura Ringim
Volume 2 Issue 2
Abstract
This study examined the influence of a major reform in financial reporting regulation (the adoption of the International Financial Reporting Standards (IFRS) on dividend payout of companies that adopted IFRS. A survey method was adopted where the entire population of non-financial firms listed on the Nigerian Stock Exchange (NSE) was examined from 2007-2017. As a result, a total of 77 listed non-financial firms were studied. The findings of the study revealed a positive and significant increase in the dividend payout of the Nigerian listed non-financial firms after the mandatory adoption of IFRS. Thus, the study concludes that the transition to the new regulation has impacted on the financial reporting quality of the listed non-financial firms in Nigeria. Based on the findings of this study, a full transition to the new financial regulation (the adoption of IFRS) is therefore recommended for all the non-financial firms listed on the Nigerian Stock Exchange. Keywords: IFRS, Dividend payout, Information Asymmetry and Nigeria.
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