Version 1
: Received: 5 August 2024 / Approved: 5 August 2024 / Online: 5 August 2024 (08:25:27 CEST)
How to cite:
AKPADAKA, O. S.; Farouk, M. A.; Dang, D. Y. Moderating Effect of Profitability on the Relationship Between Capital Structure and Dividend Policy. Preprints2024, 2024080242. https://doi.org/10.20944/preprints202408.0242.v1
AKPADAKA, O. S.; Farouk, M. A.; Dang, D. Y. Moderating Effect of Profitability on the Relationship Between Capital Structure and Dividend Policy. Preprints 2024, 2024080242. https://doi.org/10.20944/preprints202408.0242.v1
AKPADAKA, O. S.; Farouk, M. A.; Dang, D. Y. Moderating Effect of Profitability on the Relationship Between Capital Structure and Dividend Policy. Preprints2024, 2024080242. https://doi.org/10.20944/preprints202408.0242.v1
APA Style
AKPADAKA, O. S., Farouk, M. A., & Dang, D. Y. (2024). Moderating Effect of Profitability on the Relationship Between Capital Structure and Dividend Policy. Preprints. https://doi.org/10.20944/preprints202408.0242.v1
Chicago/Turabian Style
AKPADAKA, O. S., Musa Adeiza Farouk and Dagwom Yohanna Dang. 2024 "Moderating Effect of Profitability on the Relationship Between Capital Structure and Dividend Policy" Preprints. https://doi.org/10.20944/preprints202408.0242.v1
Abstract
This study examines how profitability moderates capital structure and dividend policy in selected Sub-Saharan African manufacturing enterprises. The study analyses 2012–2022 data from 131 listed firms in six countries using a quantitative and ex post facto research design. Debt-to-equity, asset structure, debt-to-asset, and return on assets are variable of interest. The debt-to-equity ratio negatively affects dividend policy, but asset structure positively affects it, according to pooled OLS and moderated regression models. Profitability considerably moderates the association between debt-to-equity and dividend policy, while debt-to-asset ratio has a positive but negligible influence. The findings emphasize the role of profitability in financial decision-making and suggest that firms should balance their capital structure and profitability to optimize dividend policies. The study fills gaps in emerging economy literature and offers managers and policymakers practical advice to improve financial performance and shareholder value in Sub-Saharan African-listed manufacturing enterprises.
Keywords
Capital Structure; Dividend Policy; Profitability; Moderating Effect; Sub-Saharan Africa
Subject
Business, Economics and Management, Finance
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
