Ibrahim Fali - Department of Accounting, University of Calabar, Calabar, Nigeria
Daniel Gbegi - Department of Accounting, Faculty of Management Sciences, Federal University of Kashere, Gombe State, Nigeria.
Philip Jehu - Department of Accounting, Faculty of Management Sciences, Federal University of Kashere, Gombe State, Nigeria.

Past studies have presented inconclusive results on the relationship between profitability and firm value, there is a need to take into consideration a moderating variable to strengthen the relationship. This study therefore, introduces dividend policy as moderator to examine its effect on the relationship between profitability and firm value of listed deposit money banks in Nigeria. The study adopted the Ex Facto-research design and the study used ten years, from ۲۰۱۲ to ۲۰۲۱. The study's population consisted of ۱۵ listed banks on the floor of the Nigeria Exchange Group, and ۱۲ were selected as study samples after filtering time frame. Secondary data were collected from audited financial report and accounts of the sample banks and the Nigeria Exchange Group's website. STATA was used to analyze the data, and the results revealed a negative direct link between profitability as assessed by return on assets and return on equity and firm value as measured by market value added. Furthermore, a higher dividend policy ratio strengthens the relationship between profitability and firm value. We add evidence that the dividend policy acts as a pure moderator in the banking industry. However, based on the findings, it is suggested that the regulatory authorities develop post-dividend payment legislation that can effectively contribute to the firm's dividend policy decision. The findings highlight the importance of profitability and dividend policy in maximizing corporate value in the banking industry.

Dividend Policy, Firm Value, information asymmetry and signaling, Profitability