THE IMPACT OF TAXES ON THE DIVIDEND POLICIES OF BANKS IN NIGERIA

THE IMPACT OF TAXES ON THE DIVIDEND POLICIES OF BANKS IN NIGERIA

ABSTRACT

This research work is concerned with the impact of taxes on Dividend Policy of Banks in Nigeria. Nigeria banks operate in an environment that is rarely the same with their foreign counter – parts. Thus, the purpose of this study is to reveal how propounded dividend policy models could apply to banks in Nigeria and the impact of taxes on dividend payout in the banks. The research methodology used in this research was the quasi-experimental design, while the sampling procedure adopted was basically the simple random sampling method.  The analysis of data in this research was based on certain statistical tools including the chi-square (X²). The findings showed that taxes have a great influence on the dividend pay-out of companies.  It also showed that shareholders are normally concerned about the payout ratio of their companies. It was therefore recommended that companies should not neglect the payment of taxes as this would lead to enhanced business environment and profitability in the long –run. Government on its own part should also make policies that would not lead to multiple taxation so that these indigenous banks can grow. This growth will lead to economic stability.