scholarly journals Dividend Policy and Share Price Volatility of Nigerian Oil and Gas Industries

2018 ◽  
Vol 6 (1) ◽  
pp. 17-29
Author(s):  
Adamu Idi
Keyword(s):  
Dividend Policy ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Price Volatility ◽  
Secondary Data ◽  
Share Price ◽  
Dividend Payment ◽  
Ex Post ◽  
Ex Post Facto ◽  
A Company

This work aimed at assessing the Effect of dividend policy on share price volatility of downstream sector of Oil and Gas Company in Nigeria. The population of the study comprised all the twelve (12) quoted oil and gas downstream sector on the Nigerian Stock Exchange as o December 2016, it covered the period of 5 years from 2011 to 2015. Four (4) companies were selected as sample due to the availability of data. The study employed ex-post facto research design; secondary data were collected from a sample of the study. The descriptive statistic, diagnostic test, correlation and multiple regressions were employed. The study found that dividend policy affects the share price volatility significantly. This result supports the Gordon Theory of dividend, which asserts that dividend payment is relevant and affects the share price of a company.

scholarly journals Faktor-Faktor Yang Mempengaruhi Volatilitas Harga Saham Perusahaan Manufaktur

2019 ◽  
Vol 24 (1) ◽  
pp. 46
Author(s):  
Linda Santioso, Yosevin Gloria Angesti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Price Volatility ◽  
Secondary Data ◽  
Total Sample ◽  
T Test ◽  
Share Price ◽  
Coefficient Of Determination ◽  
Manufacturing Companies ◽  
Debt Policy

The purpose of this study is to find out and analyze the influence of dividend policy, earning volatility, debt policy, growth asset and earning per share. The research method used was purposive sampling with a total sample of 35 manufacturing companies listed on the Indonesia Stock Exchange (IDX). This research was conducted using years of observation, namely 2015-2017. The type of data used is secondary data. Data is obtained from financial statements taken from www.idx.com. Data analysis method used is descriptive statistical test,multicollinearity test,f test, t test and test coefficient of determination. Testing the hypothesis in this study uses the t test. The results of the study show that the dividend policy, earning volatility, debt policy and growth asset do not have a significant effect on share price volatility, while the earning per share has a significant negative effect on share price volatility.

scholarly journals The role of dividend policy in share price volatility

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Lydia Pelcher
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Wealth Distribution ◽  
Price Volatility ◽  
Shareholder Wealth ◽  
Share Price ◽  
Wealth Creation ◽  
Top 40 ◽  
A Company

Orientation: A key objective of a company is to maximise shareholder wealth. Distribution of created wealth is achieved either through reinvestment in the company, which increases share value, or through dividend payouts. This encapsulates the dividend policy of a company. In order to realise a cash return, the former requires an investor to liquidate part of the investment, while the latter provides an immediate cash return.Research purpose: The objective was to establish whether relationships exist between share price volatility and dividend policy for shares listed on the Johannesburg Stock Exchange Limited (JSE).Motivation for the study: Dividend policy is an important consideration in the wealth creation process, particularly whether or not to distribute dividends to shareholders. Dividend policy is often structured to cater for shareholders’ expectations.Research design, approach and method: Panel data analysis was employed on a sample of the top 40 JSE-listed shares from 2007 to 2016.Main findings: The results indicated that the association between share price volatility and dividend yield is positive and significant but that between share price volatility and payout ratio is insignificant.Practical/managerial implications: Dividends were proven to be relevant to shareholders and have an association with share price volatility.Contribution/value-add: Dividend policy for the top 40 companies listed on the JSE is a contributor to share price volatility. In order to minimise share price volatility, managers of dividend-paying companies should structure the dividend policy to have consistent dividend payments but also able to reinvest excess cash within the company.

scholarly journals The Determinant of Equity Share Price and the Listed Deposit Money Banks in Nigeria

2019 ◽  
Vol 2 (2) ◽  
pp. 127-142
Author(s):  
Godwin Emmanuel Oyedokun ◽  
Olusegun Adebowale Arotolu ◽  
Harison Vincent
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Least Square ◽  
Share Price ◽  
Annual Reports ◽  
Dividend Payout ◽  
Financial Variables ◽  
Ex Post ◽  
Price Earnings Ratio ◽  
Ex Post Facto

In this study, the researcher examined the financial variables influencing the share price of listed deposit money banks in Nigeria. An ex-post facto research design was employed with the population consisting of all fifteen (15) listed deposit money banks on the Nigeria Stock Exchange (NSE), and a sample of twelve (12) listed deposit money banks on NSE was taken using filter criteria and judgemental sampling techniques. Secondary data used were sourced from the annual reports of the sampled banks and GTI Securities Ltd. for five years period from 2013-2017. Ordinary Least Square (OLS) was used to analyze the data. The results of the multiple regression revealed that the dividend payout ratio and price-earnings ratio have a significant positive relationship with the share price. The results also showed that dividend yield has a significant negative association with share price; the book value per share has no meaningful relationship with the share price. This study recommends that the shareholders in the deposit money banks should be guided by industry financial ratios, especially the profitability measures of price-earnings ratio and dividend payout ratio, as they are critical factors in predicting share price behavior.

scholarly journals Optimizing Return on Assets through Investment in Property, Plant and Equipment: Evidence from Listed Nigerian Manufacturing Companies

2020 ◽  
Vol 4 (10) ◽  
pp. 50-57
Keyword(s):  
Portfolio Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Growth Options ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Correlational Research ◽  
Ex Post ◽  
Ex Post Facto ◽  
Level Of Significance

This study examined the extent to which investment in property, plant & equipment (PPE) made by listed manufacturing companies in Nigeria relate with the return on assets (ROA). The non-usage of composite appraisal techniques, other than traditional budgeting techniques was seen as a major problem of investment decisions on PPE. The study adopted the quantitative panel methodology of the ex post facto and correlational research design. Secondary data were extracted from the fact books of the Nigerian Stock Exchange for the period, 2013 – 2018. The number of manufacturing companies listed in the Stock Exchange during this period was 83, which was also taken as the population of the study. The sample used in the study was 69. Three hypotheses were tested at 0.05 level of significance. Multiple and simple regression analyses were used on the data collected, to find the relationship between the independent and dependent variables. The hypotheses tested indicated in the findings that property, plant and equipment had a significant relationship with return on assets of listed manufacturing firms in Nigeria when there is a joint relationship between variables of property, plant & equipment (PPE) and return on asset (ROA). Based on the findings and conclusion, it was recommended that management of manufacturing companies should ensure a holistic use of all techniques, exploring the real and growth options analyses as well as portfolio management techniques involving productive non-current assets, to earn the benefit of return on assets invested.

Effect of Dividend Policy on Stock Price Volatility in Nigeria Stock Exchange

2019 ◽  
Vol 9 (2) ◽  
pp. 219
Author(s):  
Felix Ebun Araoye ◽  
Akinola Michael Aruwaji ◽  
Emmanuel OlusuyiAjayi
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Payout ◽  
Share Prices ◽  
Duration Effect

This paper seeks to determine the effect of dividend policy and dividend payment on share price volatility in Nigeria. Several literatures have showed evidence that dividend policy vary inversely proportional with share price volatility with duration effect. The study used data from the actively trading companies listed in the Nigeria Securities Exchange for a period of ten (10) years from 2005–2014. The estimation is based on panel data analysis between dividend policy measures (dividend payout, dividend per share, earnings after tax, dividend declared and number of share) and Share price volatility. The findings from the random effects regression results showed dividend per share is the major determinants of share price volatility in NSE (β = 0.6870, ρ<0.05). Dividend payout ratio negatively affect share price volatility (β =0.612, ρ>0.05) and earnings after tax negatively affect share price volatility (β =0.038, ρ>0.05).Thus, the higher the payout ratio the less the share price volatility, and the higher the earnings after tax lower the share price volatility. In conclusion, dividend per share has positive effect and inclusive relationship with market share prices. It is recommended that firms should try and improve on their financial performance that will enable consistent increase in the dividend per share for positive impact on market value.

scholarly journals Managing Earnings V/S Strategizing Dividends: Sectoral Evidence from Pakistan Stock Exchange

2018 ◽  
Vol 13 (2) ◽  
pp. 218
Author(s):  
Farhan Ahmed ◽  
Javed Ahmed
Keyword(s):  
Dividend Policy ◽  
Oil And Gas ◽  
Positive Impact ◽  
Stock Exchange ◽  
Earning Management ◽  
Annual Data ◽  
Dividend Payment ◽  
Relationship Of ◽  
The Relationship ◽  
Bahasa Indonesia

<p><em>This paper means to inspect the regression between the Price to Book ratio as a proxy for earning management and payout proportion as a proxy to dividend policy. This paper utilizes multivariate analysis to examine the relationship between the price to book ratio and dividend policy. Using 11 years’ annual data from 2006-2016, this paper delivers new confirmation demonstrating that timely payment of dividend has a positive impact on the reputation of the company in the market. Dividend payment boosts up investors’ confidence to invest in the company. This study helps the corporate superintendents and stock financial experts to focus on the relationship of the dividend. No past review has handled the issue of the contingent relationship between the price to book ratio and payout proportion in Pakistani Industry and specifically on cement, food and oil and gas sectors</em>.</p><p><strong>Abstrak dalam Bahasa Indonesia</strong> : Tulisan ini bermaksud untuk meneliti regresi antara Price to Book Ratio sebagai proksi untuk manajemen penghasilan dan proporsi pembayaran sebagai proksi untuk kebijakan dividen.Penelitian ini menggunakan analisis multivariat untuk menguji hubungan antara Price to Book Ratio dan kebijakan dividen. Dengan menggunakan data tahunan selama 11 tahun dari 2006-2016, artikel ini memunculkan suatu konfirmasi yang menunjukkan bahwa pembayaran dividen tepat waktu memiliki dampak positif pada reputasi perusahaan di pasar. Pembayaran dividen meningkatkan kepercayaan investor untuk berinvestasi di perusahaan. Studi ini membantu pengawas perusahaan dan ahli keuangan saham untuk fokus pada hubungan dividen. Belum ada penelitian sebelumnya yang menangani masalah hubungan kontingen antara Price to Book Ratio dan proporsi pembayaran dalam Industri di Pakistan dan khususnya pada sektor semen, pangan dan minyak dan gas.</p>

THE ROLE OF DIVIDEND POLICY IN DETERMINING THE MARKET VALUE OF SHARE OF LISTED INDUSTRIAL GOODS COMPANIES IN NIGERIA

2021 ◽  
Vol 9 (1) ◽  
pp. 7-19
Author(s):  
Muhammad Mustapha ◽  
◽  
Modu Buni ◽  
Abdullahi Idriss ◽  
◽  
...  
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Critical Evaluation ◽  
Market Value ◽  
Share Price ◽  
Annual Reports ◽  
Dividend Yield ◽  
Dividend Payout ◽  
Ex Post

This study examines the role of dividend policy in determining the market value of share of listed industrial goods companies in Nigeria, the research design used as a guide is ex-post facto method, as the study entails the use of annual reports and accounts of listed industrial goods companies in the Nigerian Stock Exchange (NSE). The secondary data were sourced from the company’s financial report for the period of five years from 2013 to 2017 contained in company’s annual reports and account and all were used to compute the dependent variable (share price) while dividend payout ratio and dividend yield as proxies of independent variable respectively. Regression analysis is use establish the relationship between the variables by using Statistical Software (SPSS). The result showed that there is no positive significant relationship between dividend payout ratio, dividend yield and share price of listed industrial goods companies in the Nigeria. Based on findings the study recommends that the existing investors in the Nigerian industrial goods sector should from time to time; ensure extensive and critical evaluation of dividend policy as it can significantly influence their market value which has ultimate effect on the investments.

A Test of Miller and Modigliani Dividend Policy Irrelevance Theory in Nigerian Stock Market

2018 ◽  
Vol 2 (2) ◽  
pp. 1-13
Author(s):  
Udobi, Philomina I ◽  
Iyiegbuniwe, Wilfred I.
Keyword(s):  
Direct Effect ◽  
Indirect Effect ◽  
Stock Price ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Share Price ◽  
Mediation Analyses ◽  
Dividend Irrelevance

This study empirically tests for the validity of Miller and Modigliani’s dividend irrelevance proposition in the Nigerian Stock Exchange (NSE). Secondary data were obtained from the Nigerian Stock Exchange fact book and firms’ annual audited financial statements for fifteen years (2001-2015). Mediation Analyses, was used to measure the direct and indirect effects of dividend on stock price. Correction of the anomalous use of current dividend and current earnings by the use of naive expectation of dividend and earnings revealed that the direct effect of expected dividend on share price is significant but the indirect effect of expected dividend on share price through earnings is not significant.  The implication of these results is that expected dividend has its unique (direct) effect on share price beyond the effect on share price which it shares with expected earnings (indirect effect). This conclusion suggests that dividend policy is relevant in valuation of shares in NSE. It was therefore recommended that company management should treat dividend as an active corporate finance decision-making variable and should employ dividend in information signalling to capital market investors.

scholarly journals VALUE RELEVANCE OF ACCOUNTING INFORMATION AND SHARE PRICE: AN EMPIRICAL STUDY ON MANUFACTURING FIRMS IN NIGERIA

2020 ◽  
pp. 64-77
Author(s):  
OC Ogbodo ◽  
Benjamin Osisioma
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Manufacturing Firms ◽  
Least Square ◽  
Share Price ◽  
Manufacturing Companies ◽  
Causality Test ◽  
Ex Post ◽  
Ex Post Facto

This study assessed the relationship between the value relevance of accounting information and share price with a focus on manufacturing companies listed on the Nigerian Stock Exchange (NSE). The Ex-post facto research design was used. Ordinary Least Square (OLS) regression analysis and Granger Causality test was used to test the hypothesis with the aid of E-View 9.0. The results of this study revealed that there is a significant positive relationship between Dividend per Share and the Share Price. The researcher recommends among others that standard setters, the stock market regulators and listed manufacturing firms in Nigeria should continuously devise ways of improving the quality of accounting information published in financial statements to maintain and increase their value relevance to the investors and other stakeholders.

scholarly journals The Effect of Working Capital Turnover on Company Liquidity at PT. Gudamg Garam, Tbk (Case study on the Indonesian stock exchange) (2007 – 2011

2021 ◽  
Author(s):  
endang naryono
Keyword(s):  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Positive Influence ◽  
Primary Data ◽  
Working Capital ◽  
Financial Reports ◽  
Ex Post ◽  
Ex Post Facto

This study aims to determine the working capital turnover of PT Gudang Garam, the development of the company's performance at PT Gudang Garam, and to determine the effect of working capital turnover on the company's performance at PT Gudang Garam, Tbk. The research method used is the ex-post facto method. This study uses primary data and secondary data obtained from financial and non-financial reports from PT Gudang Garam. To test the hypothesis, simple regression was used. Based on the results of the analysis, it shows that there is a positive influence between working capital turnover at PT Gudang Garam. The level of closeness of the relationship (correlation) of the two variables is quite strong, namely r = 0.752 with a correlation coefficient value of r &gt; 0. The level of influence achieved is 56.55%, and the remaining 43.45% is influenced by other factors. Meanwhile, by testing the hypothesis by using the t-test, the t-count value = 5.947 and the t-table value = 0.997. Based on the t-count value, the T-count value is greater than T-table H0 is in the rejection area. The results of simple linear regression analysis that every 1X (times) increase in working capital turnover, the company's performance will increase by 7.462%.

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