EFFECT OF CAPITAL STRUCTURE ON DIVIDEND PAYOUT RATIO OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA

Abstract

This study examined the e ect of capital structure on dividend payout ratio of listed pharmaceutical ÿrms in Nigeria. The study adopted expost-facto research design and the four independent variables of the study were; Long term debt to total assets (LTTA); Short term debt to total assets (STTA); Total debt to total assets (TDTA) and Total debt to total Equity (TDTE) while the dependent variables is dividend payout ratio. The population and sample size of the study were both six because census sampling technique was used. The study was analysed using multiple regression technique of data analysis based on the nature of the study. The study found that all of the capital structures variables examined were statistically insigniÿcant, with the exception of the ratio of total debt to total equity which was signiÿcant statistically. The study recommended that listed pharmaceutical companies in Nigeria should raise their total debt to equity in light of the aforementioned ÿndings, as this would lead to a higher dividend payout ratio for these companies.