Key Features:
- No of Pages: 58
- No of Chapters: 5
- Well Detailed
Abstract:
The study examined the impact of dividend policy on the stock prices of quoted firms in Nigeria. Quantitative analysis design was adopted and simple random sampling technique was used in the selection of the sample size. The data for the study were sourced from the secondary sources. The sample period covers from 2010-2014. The data were sourced from the annual report and accounts of the selected firms on the Nigeria Stock Exchange.
Data were analyzed by the use of multiple regression of the ordinary least square analysis;
Findings indicate that dividend per share has a positive impact on stock prices per share and it is a signal to the investors that the firm is performing well and it is profitable. This will allow potential investors to invest more in the stocks of such company.
It has also revealed that retained earnings per share has a positive and significant impact on the stock prices per share of companies the awareness of this make present investors to increase their level of investment in the stocks of such companies and potential investors are also motivated to invest in the stock of such companies.
It is recommended that, the fact that dividend is still an important determinant of share market prices means that companies may increase their share market price by increase in the rate of dividend paid. In order words, there is sufficient empirical evidence to believe that a liberal dividend policy will lead to a higher average market value of common stocks than will penurious dividend policies. In effect, we suggest that corporate management should follow generous dividend policy, which will maximize the long term benefits to its stockholders.
Table of Content:
TABLE OF CONTENT
page
Title page
Certification i
Dedication ii
Acknowledgement iii
Abstract iv
Table of content v-vi
CHAPTER ONE: Introduction
1.1 Background of the study 1
1.2 Statement of the research problem 3
1.3 Research objectives 4
1.4 Research questions 5
1.5 Research hypothesis 5
1.6 Significance of the study 6
1.7 Scope of the study 7
1.8 Definition of terms 8
CHAPTER TWO: Literature review
2.1 Conceptual review of the study 10
2.2 Theoretical review of the study 22
2.3 Empirical review of the study 27
CHAPTER THREE: Research methodology
3.1 Introduction 38
3.2 Research design 38
3.3 Research population 38
3.4 Sampling techniques and sampling size 38
3.5 Method of data collection 39
3.6 Model specification 39
3.7 Measurement of variables 40
3.8 Method of analysis 40
CHAPTER FOUR: Data Presentation, Analysis and Interpretation
4.1 Descriptive Analysis 42
4.2 Correlation Matrics 43
4.3 Effect of Dividend Policy on Stock Prices 44
CHAPTER FIVE: Summary, Conclusion and Recommendation
5.1 Summary of research finding 46
5.2 Conclusion 46
5.3 Recommendation 48
BIBLIOGRAPHY 50
APPENDIX 53-54
Introduction:
Dividend policy in general term refers to the percentage of earning that an enterprise can make in its internal financial decisions. The objectives of choosing a dividend policy should be to maximize the returns made by an enterprise to its shareholders. Dividend as it should be realized are not limited to cash, it may involve some other items of assets. Soyode points out at dividend encompasses the distribution of any asset or additional stock split dividends and other practices by which earning or asset can be distributes to shareholders. Dividends ate projects made by a corporation to its shareholders members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses; it can either be invested in the business called retained earnings or it can be paid to shareholders as a divided many corporation retain a portion of their earnings and pay the reminder as a dividend for a joint stock, a dividend is allocate as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding for the joint stock company paying dividend is not an expenses rather, it is the division of an asset among shareholders companies usually pay dividends on a fixed schedule a special dividend to distinguish it from a regular according to members activity, so their dividends are of the consider to be a pre-tax expenses.
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