DETERMINANTS OF MARKET PRICE OF COMMON STOCK OF LISTED INDUSTRIALIZED FIRMS IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 2
Abstract
This study explores the effect of the dividend payout ratio on the share price of listed industrialized firms' common stock in Nigeria. This study comprises sixty-three industrialized firms whose shares were listed on the Nigerian stock exchange between 2008 and 2019. Fifty-one firms have been used as a sample. Panel regression analysis was used to test the hypotheses of this study. The results showed that the dividend payout ratio, growth, and age significantly impacted the common stock market price. Also, leverage and firm size had a significant negative impact on the market price of the common stock. However, profitability has an insignificant impact on the market price of the common stock. Accordingly, this study concludes that the dividend payout ratio is essential for determining the common market price. It suggests that Nigeria's listed industrialized firms could restructure their dividend policies to the extent that the dividend payout ratio will be susceptible to shareholders' needs. It will promote more spending by shareholders (existing shareholders to retain their shareholding and invest in buying more shares when made available). It would help attract prospective investors to invest in the company's share, thus growing the wealth of existing shareholders.
Authors and Affiliations
Aishat Salawudeen, Abdullateef Ibrahim
Keywords
Related Articles
- EP ID EP709157
- DOI -
- Views 92
- Downloads 0
WORKING CAPITAL MANAGEMENT AND THE FINANCIAL PERFORMANCE OF LISTED OIL AND GAS COMPANIES IN NIGERIA
Working capital is required for steering the day to day operations of an organization and hence its importance. This study examines the impact of working capital management on the financial performance of listed oil and...
CORPORATE ATTRIBUTES AND AUDIT FEE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
The objective of the study is to examine the effect of firm characteristics on audit fee of listed Deposit Money Banks (DMBs) in Nigeria. Correlational research design was used for this study with an extensive reliance...
NEXUS BETWEEN TAXATION AND FOREIGN DIRECT INVESTMENT IN NIGERIA
This paper explored taxation and foreign direct investment (FDI) using the case of Nigeria with limited investigation. Taxation was proxy by company income tax (CITX) and value added tax (VATX), while FDI was proxy by F...
FIRM ATTRIBUTES AND EXECUTIVE COMPENSATION OF CONGLOMERATES IN NIGERIA
Executive compensation, particularly in the western countries has over the years received intense media and research interest particularly from the occurrence of large corporate failures. This brought to the fore, the...
CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY OF QUOTED NIGERIAN FIRMS: THE MEDIATING EFFECT OF FIRM SIZE
The study examines the link between Corporate Social Responsibility (CSR) and profitability with emphasis on the role of firm size. The population consists of 106 quoted Nigerian non-financial firms, out of which a samp...