Ownership Structure, Corporate Governance, and Dividend Smoothing Behaviour in Nigerian Listed Non-Financial Firms

This study examines the interactive effects of ownership structure and corporate governance quality on dividend smoothing behaviour in Nigerian listed non-financial firms. Dividend smoothing, whereby managers stabilise dividends over time to signal financial health and reduce investor uncertainty, is a well-established phenomenon in dividend policy literature. In Nigeria, where institutional ownership patterns are diverse and governance quality varies widely, the moderating role of governance mechanisms on the ownership-smoothing relationship remains underexplored. Drawing on the signalling hypothesis, the partial adjustment model of dividend smoothing, and the governance monitoring literature, this study estimates Lintner's dividend smoothing coefficient for a panel of thirty non-financial listed firms over eight years. Ownership variables including institutional ownership proportion, founding family ownership, and ownership concentration are interacted with a composite governance quality index constructed from board and audit committee characteristics. System generalised method of moments is applied to address potential endogeneity concerns in the governance-ownership-dividend nexus. The study identifies a research gap by focusing specifically on the interactive governance-ownership dynamic rather than their independent effects, which have been more extensively studied. Findings are expected to contribute nuanced empirical evidence to the dividend policy and governance literature in Nigeria. Implications are relevant for institutional investors, policymakers, and corporate finance managers. Keywords: dividend smoothing, ownership structure, corporate governance, listed firms, partial adjustment model.