Abstract
This study investigated the effect of dividend policy on shareholder wealth creation in Nigerian pharmaceutical firms, with emphasis on regulatory implications. Using a survey research design, data were collected from 40 financial managers of pharmaceutical firms listed on the Nigerian Stock Exchange through structured questionnaires and follow-up interviews. Descriptive statistics and frequency tables were used to analyze the data. The findings revealed that 75% of respondents (45% agree, 30% strongly agree) indicated that dividend policy significantly influences shareholder wealth creation. Regarding shareholder satisfaction and loyalty, 77.5% of respondents (50% agree, 27.5% strongly agree) reported that timely and consistent dividend payments enhance investor loyalty. On dividend payout patterns, 80% (47.5% agree, 32.5% strongly agree) noted that stable dividend payouts improve firm performance, while 72.5% (45% agree, 27.5% strongly agree) observed that irregular payouts negatively affect performance. Additionally, 77.5% (52.5% agree, 25% strongly agree) stated that regulatory guidelines influence corporate decision-making, and 82.5% (55% agree, 27.5% strongly agree) agreed that compliance with regulations enhances investor confidence. The study concludes that consistent dividend policies, stable payouts, and regulatory compliance are crucial for shareholder wealth creation, firm performance, and investor trust.