Dividend Policy, Audit Quality and Firm Value of Listed Industrial Goods Companies in Nigeria

The study examined the effects of dividend policy and audit quality on the firm value of listed industrial goods companies in Nigeria. Dividend policy was disaggregated into dividend payout ratio and dividend yield while audit quality was measured by audit committee size, audit independence and audit tenure. Firm value was represented using Tobin’s Q. This study adopted ex-post facto research design. The study population consisted of the 11 listed industrial goods companies as of 31st December 2024. Thus, the study sample comprised the entire 11 listed industrial goods companies in Nigeria using census sampling. Data were retrieved from corporate annual reports and websites of industrial goods companies between 2016 and 2023. Panel data regression analysis was used to test the formulated hypotheses. Findings showed that dividend pay-out ratio had a negative and insignificant effect on the firm value; dividend yield had a negative and significant impact on the firm value; audit quality had a positive yet insignificant moderating effect on the relationship between dividend policy and the firm value; audit quality significantly and positively moderated the relationship between dividend yield and the firm value of listed industrial goods firms in Nigeria. The study concluded that high audit quality increases investor confidence, particularly when evaluating dividend yields as a trustworthy indicator of business performance. The study recommended among others that listed industrial goods companies must thoroughly evaluate their policies on dividend pay-outs, making sure they are in harmony with long-term growth goals instead of focusing on short-term investor demands.