Moderating Role of Financial Constraints on the Relationship between Dividend Policy and Firm Performance of Oil and Gas Companies in Nigeria (2019-2023)

Abstract

Good company performance benefits workers, communities, customers, and funds suppliers. Control and coordination between ownership and management are essential for company performance. In Nigeria, most companies employ low payout strategies to maintain shareholder interest. Dividend payouts can lead a company's financial performance, with high payouts leading to slower growth and lower market prices, likewise, financial constraints lead to firm performance. This research aims to propose a framework for the moderating effect of financial constraints on the relationship between dividend policy and firm financial performance. The study employs an exploratory research method using a desktop review to develop persuasive arguments for the topic under investigation. As a result, the study proposed a conceptual framework for the relationships between the variables under study, which will help in carrying out further studies and in making decisions about dividend policy and firm performance that possible financial constraints may hamper.