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PROJECT TOPIC:  DIVIDEND POLICY AND CORPORATE MARKET PERFORMANCE: A STUDY OF QUOTED FIRMS IN NIGERIA
Department:  Banking and Finance
AMOUNT:  10,000
FORMAT:   MS WORD
PAGES:  104
 
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1.2   Statement of the Problem

 

One of the most contentious issues in finance and management due to its sensitive nature to the firm and its stakeholders is dividend policy. Dividend policy refers to the set of guidelines a company uses to decide how much of its earnings it will pay out to shareholders. As a result managers are however confronted with the decision on how much of the net earnings are to be distributed and how much of it should be re-invested. Dividend payment directly affects shareholders while re-investment for expansion and growth directly affect the manager. The persistence of these problems in spite the various policy measures adopted by various governments to strengthen the economy and inconclusive debate regarding the actual effect of dividend policy on corporate performance makes it imperative to empirically provide answers to some pertinent questions: Do dividend policy elements affect corporate share prices in Nigeria? The need to evaluate these inter-relationships therefore, in the light of recent data constitutes the core problem of this study.

 

1.3   Aim and Objectives of the Study

The aim of this study is to examine the relationship between dividend policy and corporate market performance of listed firmsin Nigeria from 2000 to 2015. The specific objectives are to:

1. Examine the nature of relationship between Dividend Payout Ratio (DPO) and Share Prices (PPS) of listed firms in Nigeria.

2. Investigate the nature of relationship between Retained Earnings Ratio (RER) and Share Prices (PPS) of Nigerian firms.

3. Evaluate the extent to which New Issues (NEW) influence Share Prices (PPS) of listed firms in Nigeria.

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