Home / Economics / Effects of dividends policy on the market price of share. (a case study of first bank of nigeria plc)

Effects of dividends policy on the market price of share. (a case study of first bank of nigeria plc)

 

Table Of Contents


Chapter ONE

1.1 Introduction
1.2 Background of Study
1.3 Problem Statement
1.4 Objective of Study
1.5 Limitation of Study
1.6 Scope of Study
1.7 Significance of Study
1.8 Structure of the Research
1.9 Definition of Terms

Chapter TWO

2.1 Overview of Dividends Policy
2.2 Historical Perspective of Dividends Policy
2.3 Theoretical Framework on Dividends Policy
2.4 Empirical Studies on Dividends Policy
2.5 Dividends Policy and Share Price Relationship
2.6 Factors Influencing Dividends Policy
2.7 Dividends Policy in the Financial Market
2.8 Dividends Policy Strategies
2.9 Dividends Policy and Investor Behavior
2.10 Summary of Literature Review

Chapter THREE

3.1 Research Methodology Overview
3.2 Research Design and Approach
3.3 Data Collection Methods
3.4 Sampling Techniques
3.5 Data Analysis Tools
3.6 Research Ethics and Validity
3.7 Limitations of the Research Methodology
3.8 Research Timeline and Budget

Chapter FOUR

4.1 Data Analysis and Interpretation
4.2 Overview of Research Findings
4.3 Impact of Dividends Policy on Share Prices
4.4 Comparison of Dividends Policies
4.5 Investor Reactions to Dividends Policy Changes
4.6 Case Studies on Dividends Policy Effects
4.7 Recommendations for Companies
4.8 Implications for Future Research

Chapter FIVE

5.1 Summary of Findings
5.2 Conclusion
5.3 Contributions to Knowledge
5.4 Practical Implications
5.5 Recommendations for Further Research

Project Abstract

The efficient and effective financial administration in corporate organization is sine quad non’ to the achievement of the organizational objective.

Dividend policy is said to be financial policy that is responsible for the determination of the market price of shares. But there are divergent views on the effect of dividend policy on the market price of shares. Dividend relevance and dividend irrelevance theories. The regression analysis performed on the secondary data collected, using market price of shares as dependent variable, dividend per share, retained earnings per share and earnings per share as independent variables, revealed that there is significant relationship between dividend policy and market price of shares. It was also revealed that dividend affect market price of share more than retained earnings. It was also concluded that the belief of the dividend irrelevance theorists is wrong in the real life situation where forces of demand and supply play a determining role. It was recommended that financial administrators study and educate the environment in the formulation of dividend policy. Hence, optimum dividend policy will be achieved which in tum increases the value of the business firm.



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