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Impact of Dividend Policy and Earnings on Selected Quoted Companies in Nigeria


Affiliations
1 Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria
 

This study considers the impact of Dividend policy and Earnings on selected quoted companies in Nigeria and it covers the period from 2004 -2013 also the study majorly employed secondary data for the statistical analysis. The secondary data were obtained through the internet from stock broking firm’s online database. Furthermore, the study made use of stratified sampling technique in selecting the twenty-five (25) companies considered in this research work which cut across seven (7) sectors of the companies listed on the Nigeria Stock Exchange. The study used multiple regression and Durbin Watson in testing the hypothesis considered in this study, and the statistical analysis was done using Statistical Package for Social Sciences (SPSS version 20). The findings revealed that there was a significant relationship between dividend and market value but, this relationship can only be established between earning per share and dividend yield, because, it is the only proxies of dividend polices that had a P-value (0.020) which is less than the alpha value of (0.05) which implies that there is relationship with market value proxy (i.e. earnings per share) while the other proxies of dividend policy did not show any relationship. Therefore, the study recommends that investors, shareholder and stockbrokers should pay more attention to dividend yield of quoted companies in Nigeria because it can easily be used to determine the extent to which the earnings of the quoted companies are either increasing or decreasing since, it is the only proxies of dividend policy that show relationship with the chosen proxies of earnings considered in this study.


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  • Impact of Dividend Policy and Earnings on Selected Quoted Companies in Nigeria

Abstract Views: 164  |  PDF Views: 2

Authors

Eniola
Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria
Omoniyi Jacob
Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria
Akinselure
Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria
Oluwafemi
Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria
Philip
Department of Accounting, Joseph Ayo Babalola University, Ikeji-Arakeji, Osun State, Nigeria

Abstract


This study considers the impact of Dividend policy and Earnings on selected quoted companies in Nigeria and it covers the period from 2004 -2013 also the study majorly employed secondary data for the statistical analysis. The secondary data were obtained through the internet from stock broking firm’s online database. Furthermore, the study made use of stratified sampling technique in selecting the twenty-five (25) companies considered in this research work which cut across seven (7) sectors of the companies listed on the Nigeria Stock Exchange. The study used multiple regression and Durbin Watson in testing the hypothesis considered in this study, and the statistical analysis was done using Statistical Package for Social Sciences (SPSS version 20). The findings revealed that there was a significant relationship between dividend and market value but, this relationship can only be established between earning per share and dividend yield, because, it is the only proxies of dividend polices that had a P-value (0.020) which is less than the alpha value of (0.05) which implies that there is relationship with market value proxy (i.e. earnings per share) while the other proxies of dividend policy did not show any relationship. Therefore, the study recommends that investors, shareholder and stockbrokers should pay more attention to dividend yield of quoted companies in Nigeria because it can easily be used to determine the extent to which the earnings of the quoted companies are either increasing or decreasing since, it is the only proxies of dividend policy that show relationship with the chosen proxies of earnings considered in this study.