IMPACT OF DIVIDEND POLICY ON STOCK PRICE: EVIDENCE FROM BANKS, OIL & GAS AND FOOD & BEVERAGES FIRMS LISTED ON THE NIGERIA STOCK EXCHANGE

Main Article Content

NDUKWE ORJI DIBIA

Abstract

The purpose of this study is to investigate the impact of dividend yield & payout on the stock prices of quoted banking, petrochemicals and food & beverages firms in Nigeria. Data was extracted from the audited financial statements of the nine selected firms and two Nigerian Newspapers and data extracted was subjected to econometric testing using Panel Least Squares method and the Panel Estimated Generalized Least Square (EGLS) to correct violations of assumption of Classical Linear Regression Model (CLRM). Findings shows that dividend payout ratio positively affects share prices of the nine selected quoted firms, whereas dividend yield possesses an adverse effect on share prices of the nine selected quoted firms in Nigeria. On the other hand, increase in firm size possesses an adverse effect on share prices of the nine selected quoted firms in the case of Nigeria. Recommendations and policy options relevant to firms and stakeholders at large were proffered herein.

Keywords:
Dividend yield, dividend payout ratio, stock prices, panel EGLS

Article Details

How to Cite
DIBIA, N. O. (2021). IMPACT OF DIVIDEND POLICY ON STOCK PRICE: EVIDENCE FROM BANKS, OIL & GAS AND FOOD & BEVERAGES FIRMS LISTED ON THE NIGERIA STOCK EXCHANGE. Journal of Global Economics, Management and Business Research, 13(4), 24-33. Retrieved from https://www.ikprress.org/index.php/JGEMBR/article/view/7083
Section
Original Research Article

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