Research Article

Dividend Policy and Share Price Reaction of Deposit Money Banks in Nigeria: A Post Global Financial Crises Review

Nurudeen Oyairekhua Aileobini1*, Bala Ado K/Mata1, Muhammad Yadudu1
1 Department of Business Administration and Entrepreneurship Bayero University Kano, Nigeria
* Corresponding author: nuruaileobini@gmail.com
Published: Apr, 2022
DOI: 10.67894/bbr.2022.ou4dg416
Pages: 160-170
Views: 11
Downloads: 3

Abstract

This paper examined the effect of Dividend Policy on the Market Price of Shares of Deposit Money Banks in Nigeria. The sample consists of a balanced panel data of 13 Deposit Money Banks listed on the Nigerian Stock Exchange as at 2019. The study utilized Econometrics Regression model to test the effect of Dividend Policy on Market Price of Shares of Deposit Money Banks in Nigeria. The result shows that first proxy of Independent Variable (DY) has no significant effect on market price of shares of sampled banks. It also found out that DPR (another proxy of Independent Variable) has no significant effect on market price of shares. The result revealed that DC (the third proxy ofIndependent Variable) has no significanteffect on MPS. Therefore, the Managers ofDeposit Money Banks in Nigeria should focus on Dividend Policy of their banks, asinvestors can use the Dividend Yield as a direct signal toward the potential upside of the Share Price. Hence, they could buy Shares with a high Dividend Yield to gain more stock appreciation.

Keywords

Dividend Yield Dividend Payout Dividend Cover Share Price

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How to Cite

Aileobini, N. O., K/Mata, B. A., & Yadudu, M. (2022). Dividend Policy and Share Price Reaction of Deposit Money Banks in Nigeria: A Post Global Financial Crises Review. Bayero Business Review, 6(1), 160-170. https://doi.org/10.67894/bbr.2022.ou4dg416

N. O. Aileobini, B. A. K/Mata, and M. Yadudu, "Dividend Policy and Share Price Reaction of Deposit Money Banks in Nigeria: A Post Global Financial Crises Review," Bayero Business Review, vol. 6, no. 1, pp. 160-170, April 2022. doi: 10.67894/bbr.2022.ou4dg416

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