“Effect of Dividend Policy on the Price of Ordinary Share of Selected Quoted Companies in Nigeria:- Ikpoh Chuamaka

ABSTRACT

The study investigated the effect ofdividendpolicy on the market price ofshares offirms on the Nigeria Stock Exchange (NSE). The major objectives ofthe study is to determine the effect of dividend policy on the price of ordinary share ofselected quoted companies in Nigeria. To achieve the objectives of the study, expost facto research design was adopted. The researcher adopted secondary data in getting the required information. In testing the hypotheses, regression ■was used. Data were collected from annual report and accounts of PZ Cussons, Nigeria Breweries andNestle Pic. Thefindings revealed that earnings volume has a significant effect on share price volatility. The findingsfurther revealed that dividend yield, dividend payout ratio and dividend per share has a significant impact on stock price ofquoted companies in Nigeria. The researcher recommends that Firms should endavour to retain some profitfor the financing and growth oftheir business. The researcher also recommends that Companies should consider all pertinent issues before issuing dividends. Since the share market is positively responsive to the dividend announcement, companies should always strive to pay divided consistentlyfor their shares to perform well at the stock exchange.