Quick Menu

Upcoming Journals

Asian Research Journal of Arts & Social Sciences

Asian Research Journal of Arts & Social Sciences, 2456-4761,Vol.: 6, Issue.: 1

Original-research-article

Dividend Policy and Share Price: Empirical Investigation of Zenith Bank Plc, Nigeria

 

Oyedele Oloruntoba1* and M. Adeleke, Kunle2

1Department of Accounting and Finance, Ajayi Crowther University, Oyo, Nigeria.

2Department of Accountancy, Federal Polytechnic Offa, Kwara State, Nigeria.

 

Article Information
Editor(s):
(1) Alina Georgeta Mag, Department of Private Law and Educational Science, “Lucian Blaga” University of Sibiu, Romania.
Reviewers:
(1) Jolanta Maria Ciak, WSB University, Poland.
(2) Mandla Nyathi, National University of Science and Technology, Zimbabwe.
Complete Peer review History: http://www.sciencedomain.org/review-history/23475

 

Abstracts

 

Dividend decision is one of the major decisions taken by the firm which no doubt influences the decision of both local and foreign investors. Investors in developing countries like Nigeria believe that dividend paid to the shareholders is one of the best indicators of profitability market price of the corporate share. This study, therefore examines the impact of dividend policy on a share price with specific reference to Zenith bank Plc, Nigeria. The study relied mainly on the secondary data gotten from the audited annual financial reports and accounts of Zenith bank Plc from 2007-2016. The market value of the share, earnings and the dividend paid in 2007 to 2016 were considered. Descriptive statistics were used to describe the variables while Correlation Analysis and Ordinary Linear Square (OLS) were used to examine the relationship and effect between the dependent and independent variables respectively. Results show that dividend yield (β = -242.032; t = -1.640); earnings yield (β = -.116.549; t = -1.478) payout ratio (β = -.61.484; t = -1.425) have negative impact but not significant on share price of Zenith bank. This implies that dividend policy measured by dividend yield, earnings yield and payout ratios are a weak predictor of the share price of Zenith bank.  The study, therefore, recommends that management of Zenith bank should endeavour to strict adhere to the interest of shareholders in choosing dividend policies that will maximize shareholders' value. More also, management of Zenith bank should follow a dividend payout policy that will constantly involve paying dividends annually.

 

Keywords :

Dividend policy; earnings; payout ratio; dividend yield; share price; zenith bank.

 

Full Article - PDF    Page 1-9    Article Metrics

 

DOI : 10.9734/ARJASS/2018/39811

Review History    Comments

Search this site

Advanced Search

Announcement & News

Nature (Impact Factor: 41.6) confirmed high standard of SDI journal and its editors

We are happy to inform that Nature (Impact Factor: 41.6) confirmed high standard of SDI journal and ...

ISI Thomson Reuters selected British Journal of Pharmaceutical Research for Emerging Sources Citation Index

We are delighted to inform that ISI Thomson Reuters selected British Journal of Pharmaceutical Resea...

SCOPUS selected Annual Research & Review in Biology (ARRB)

We are delighted to inform that famous indexing organization SCOPUS (from Elsevier) selected  A...

Index Copernicus Evaluation Result Released

We are delighted to inform that Index Copernicus (a leading indexing organization from Pol...

Journal Repository (JR): Permanent Digital Archiving of SDI journals

SDI is happy to announce that all our journals are now permanently archived in Journal Repository (J...

SDI journal got 35th ranking in Publons

We are delighted to announce (as of 04/01/2016) that British Journal of Medicine and Medical Re...

Growth of SDI and world publication market

As of 2014, total 25,064 journals are competing in World market of journal publication. In 2011, tot...

Science (IF: 31) report confirmed the high standard of SDI journal

As per a recent report (Link) of Science journal (present Impact factor 31), one of our journal (Bri...

SDI introduced Post-publication peer review by its comment section

SDI journals encourage Post-publication peer review by its comment section   Policy details a...

SDI promotes transparent Advanced OPEN peer review

We have migrated to transparent and toughest ‘Advanced OPEN peer review’ system (...



SCIENCEDOMAIN Awards

  • No Awards listed.

Browser Compatibility : Mozila firefox, Google Crome and IE 7 & above. Creative Commons License Terms & Condition   |   Privacy Policy   |   Join Us   |   Help   |   Contact Us
© Copyright 2010-2018, SCIENCEDOMAIN international. All rights reserved.