The Impact Of Dividend Policy On The Share Price Of Quoted Companies In Nigerian Stock Exchange

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 8

Year of Publication : 2019

Authors : N. V.Ohiaeri, F. I. Akinbowale,B. Ogumeru

10.14445/23939125/IJEMS-V6I8P116

How to Cite?

N. V.Ohiaeri, F. I. Akinbowale,B. Ogumeru, "The Impact Of Dividend Policy On The Share Price Of Quoted Companies In Nigerian Stock Exchange," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 8, pp. 145-156, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I8P116

Abstract:

The study examines the effect of dividend policy on the share prices of Nigerian quoted companies in Nigeria between 2009 and 2017 across ten companies. Secondary method of data collection was used to generate data for this study and the source of the data was from annual report of all the sampled companies. Multiple panel least square estimation, through the of Housman’s test, was used to analyze the data in this study. In the econometric model, market share price (dependent variable) was regressed on dividend yield, earning per share, dividend per share, profit after tax and retention rate. The study revealed that there exists joint significant relationship between dividend yields, earning per share, dividend per share, profit after tax, retention rate and market share prices. The study therefore recommends that; Nigerian firms should try to maintain a regular and consistent dividend policy so that prospective investor could know beforehand whether or not a firm’s dividend policy tallies with their own expectation (client effect). The government should assist in improving the quality and availability of secondary data bank relating making informed decision on share prices and dividend in Nigeria.

Keywords:

Dividend policy, Share price, Dividend yield, Corporate earning

References:

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SSRG International Journal of Economics and Management Studies (SSRG-IJEMS) – Volume 6 Issue 8– Aug 2019
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