DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA
This study examines the impact of dividend policy on share price volatility of listed deposit money banks in Nigeria. Data for the study were extracted from the annual reports and accounts of twelve (12) deposit money banks in Nigeria from 2014-2018. The study uses share price volatility as depende...
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| Format: | Article |
| Language: | English |
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Department of Accounting and Finance, Federal University Gusau
2020-10-01
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| Series: | Gusau Journal of Accounting and Finance |
| Subjects: | |
| Online Access: | https://journals.gujaf.com.ng/index.php/gujaf/article/view/33 |
| _version_ | 1811342343408713728 |
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| author | Isiaka Olalekan Lasisi James George Apochi Asma’u Mahmood Baffa Kabiru Badawiyu |
| author_facet | Isiaka Olalekan Lasisi James George Apochi Asma’u Mahmood Baffa Kabiru Badawiyu |
| author_sort | Isiaka Olalekan Lasisi |
| collection | DOAJ |
| description |
This study examines the impact of dividend policy on share price volatility of listed deposit money banks in Nigeria. Data for the study were extracted from the annual reports and accounts of twelve (12) deposit money banks in Nigeria from 2014-2018. The study uses share price volatility as dependent variable and dividend per share, earnings per share and bank size as explanatory variables. Descriptive analysis, correlation analysis and regression model were used to perform the data analysis. Random effect regression analysis was utilized to confirm the empirical finding of the study. The results show that dividend per share and earnings per share have a positive and significant impact on share price volatility of listed deposit money banks in Nigeria. The finding of the study revealed that dividends were relevant to investors, indicating that the signaling theory was relevant, and investors believed in information being transferred in the dividend policy decision. The study recommends that the board and management of banks should ensure that good dividend policy is put in place and earnings per share policies are maintained because it has been empirically proven to improve share price movement.
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| first_indexed | 2024-04-13T19:09:55Z |
| format | Article |
| id | doaj.art-14ee0f811ee84f35925b96cf4b6c0833 |
| institution | Directory Open Access Journal |
| issn | 2756-665X |
| language | English |
| last_indexed | 2024-04-13T19:09:55Z |
| publishDate | 2020-10-01 |
| publisher | Department of Accounting and Finance, Federal University Gusau |
| record_format | Article |
| series | Gusau Journal of Accounting and Finance |
| spelling | doaj.art-14ee0f811ee84f35925b96cf4b6c08332022-12-22T02:33:52ZengDepartment of Accounting and Finance, Federal University GusauGusau Journal of Accounting and Finance2756-665X2020-10-0112DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA Isiaka Olalekan Lasisi0James George Apochi1Asma’u Mahmood Baffa2Kabiru Badawiyu3Air Force Institute of Technology, Nigeria Air Force Base, KadunaAir Force Institute of Technology, Nigeria Airforce Base, KadunaAir Force Institute of Technology, Nigeria Air Force Base, KadunaAir Force Institute of Technology, Nigeria Air Force Base, Kaduna This study examines the impact of dividend policy on share price volatility of listed deposit money banks in Nigeria. Data for the study were extracted from the annual reports and accounts of twelve (12) deposit money banks in Nigeria from 2014-2018. The study uses share price volatility as dependent variable and dividend per share, earnings per share and bank size as explanatory variables. Descriptive analysis, correlation analysis and regression model were used to perform the data analysis. Random effect regression analysis was utilized to confirm the empirical finding of the study. The results show that dividend per share and earnings per share have a positive and significant impact on share price volatility of listed deposit money banks in Nigeria. The finding of the study revealed that dividends were relevant to investors, indicating that the signaling theory was relevant, and investors believed in information being transferred in the dividend policy decision. The study recommends that the board and management of banks should ensure that good dividend policy is put in place and earnings per share policies are maintained because it has been empirically proven to improve share price movement. https://journals.gujaf.com.ng/index.php/gujaf/article/view/33Dividend per ShareEarnings per ShareShare Price VolatilityBanksNigeria |
| spellingShingle | Isiaka Olalekan Lasisi James George Apochi Asma’u Mahmood Baffa Kabiru Badawiyu DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA Gusau Journal of Accounting and Finance Dividend per Share Earnings per Share Share Price Volatility Banks Nigeria |
| title | DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_full | DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_fullStr | DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_full_unstemmed | DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_short | DIVIDEND POLICY AND SHARE PRICE VOLATILITY: EVIDENCE FROM LISTED DEPOSIT MONEY BANKS IN NIGERIA |
| title_sort | dividend policy and share price volatility evidence from listed deposit money banks in nigeria |
| topic | Dividend per Share Earnings per Share Share Price Volatility Banks Nigeria |
| url | https://journals.gujaf.com.ng/index.php/gujaf/article/view/33 |
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