Asian Finance & Banking Review; Vol. 2, No. 1; 2018 ISSN 2576-1161 E-ISSN 2576-1188 Published by Centre for Research on Islamic Banking & Finance and Business 18 Corporate Characteristics and Influence on Share Based Payment of Financial Service Firms in Nigeria Davies, Stanley Diepiriye 1 & Lucky, Anyike Lucky 1 1 Department of Accountancy, Ken Saro-Wiwa Polytechnic, Bori, Rivers State, Nigeria 2 Department of Banking and Finance, Rivers State University, Nkpolu Orowurokwo, Port Harcourt,Rivers State, Nigeria. Correspondence: Davies, Stanley Diepiriye, Department of Accountancy, Ken Saro-Wiwa Polytechnic, Bori, Rivers State, Nigeria. Received: January 19, 2018 Accepted: January 22, 2018 Online Published: January 27, 2018 Abstract This investigates the effect of corporate characteristics on share base payment of financial service industry in Nigeria. Objective of the study is to if internal factors affects share base payments of corporate organizations in Nigeria. We analyzed five commercial banks and five insurance firms that are quoted on the floor of Nigerian Stock Exchange. Technique adopted for sampling adopted is convenience sampling. As the nature of data is panel therefore, pooled regression, fixed and random effect tests are run. Random effect results are focused after applying Hausman’s test. From the fixed effect model, tangibility, risk, management efficiency, debt equity ratio, corporate governance and cost of capital have negative but insignificant effects while return on investment, liquidity and firm size have positive and insignificant effect on share base payment. We conclude that corporate characteristics does not significantly influence share base payment of the selected financial service firms. We therefore recommend that the use of share base payment should be integrated with the corporate structure such as ownership structure, capital structure and others. Keywords: Share Base Payment, Corporate Characteristics, Financial Service Firms, Agency Theory, Corporate Payout Policy. 1. Introduction The traditional finance paradigm, theory and teaching put the shareholders wealth maximization as the primary goal of corporate management. The shareholders wealth maximization as function of management is a critical function that requires tactical and strategic measures to achieve. Apart from maximizing shareholders wealth as finance theory formulated, the corporate organization has obligations such as payment to employees and creditors. These can be raid in cash or share base payment. The emergence of share base payment dates back to the 1920s when it highlighted a change in ownership of the company. Due to an increasing number of private investors that became interested in the Stock Exchange and in yield investments, the separation of ownership and control of the companies started (Zhou, 2010). Share based payment issued by International Accounting Standard Board is regulated by International Financial Reporting Standard. This standard addresses payments and compensation plans which have been more and more accepted and adopted. Alexander et al. (2007) noted that bonus and profit sharing plans have for a long time been the only widely used instrument to increase compensation for executives and employees‖. However, from the beginning of 1990s stock based compensation, or more broadly share-based payments, became very popular (Hall and Liebman, 1998). Share based payment awards are an integral component of a total compensation package. As such, they concluded that an entity should recognize an expense for share-based payments, just as it does for cash compensation (Ross, 2004). International Financial Reporting Standard 2 distinguishes between the accounting treatments for share-based payment transactions of equity-settled versus cash-settled. A transaction is treated as equity-settled when an entity receives goods or services as consideration for its own equity instruments (including shares or share options), or it receives goods or services but has no obligation to settle the transaction with the supplier. Additionally, increased