Board Characteristics and Dividend Policy of Listed Oil and Gas Firms In Nigeria: A Moderating Role Of Audit Committee Tenure

Abstract

This study examined the effect of board characteristics on the dividend policy of listed oil and gas firms in Nigeria, with audit committee tenure serving as a moderating variable. The study was anchored on the Stewardship Theory. A correlational research design was adopted, while secondary data were obtained from the audited annual reports and accounts of all seven listed oil and gas firms on the Nigerian Exchange (NGX) Group covering the period from 2015 to 2024.  Population consists of 7 listed oil and gas firms in Nigeria., a census sampling technique was employed. Data were analyzed using descriptive statistics, correlation analysis, diagnostic tests, and panel regression techniques. The findings revealed that board gender diversity and board diligence exert positive and significant influences on dividend policy, suggesting that greater female representation and frequent board meetings enhance corporate governance and promote higher dividend payouts. The study further established that audit committee tenure positively influences dividend policy and significantly strengthens the relationship between board characteristics and dividend policy. The study concluded that effective board characteristics and experienced audit committees are critical determinants of dividend policy among listed oil and gas firms in Nigeria. Consequently, the study recommends that firms should promote gender diversity on corporate boards, encourage regular and effective board meetings, and maintain an optimal balance between audit committee experience and independence in order to enhance governance quality and sustain shareholder wealth. Keywords: board characteristics, audit committee tenure, dividend policy, oil and gas firms, Nigeria