Browsing by Author "Fagbemi, Temitope O."
Now showing 1 - 2 of 2
Results Per Page
Sort Options
Item Effect of Dividend Policy on the Share Price of Selected Quoted Companies In Nigeria(Department of Accounting, College of Management Sciences, Afe Babalola University, Ado Ekiti, Nigeria, 2016-01) Fagbemi, Temitope O.; Salman, Ramat T.; Lawal, Adeleke A.Dividend policy of companies determines what proportion of earnings is distributed by way of dividend to shareholders and what proportion is ploughed back for reinvestment purposes. However, companies today belong to different people with individual views on how to divide the company’s earnings between payouts and retention. This makes it difficult for corporate managers to make the most appropriate decision about the payout policy to be followed as it no doubts affects how each of diverse investors place value on the company. Hence, this study investigated the effect of dividend policy on the share price of selected quoted companies in Nigeria. In addition, the study evaluated what influences share prices the most between dividend and earnings and conducted an investigation into the sectoral effect of dividend policy on share price. Dividend signaling theory which is the extension of the dividend relevance theory was adopted for the study. The study adopted an analytical research design and 56 quoted companies were purposively sampled for the purpose of the study. Companies selected are companies with dividend record throughout the study period. Secondary data drawn majorly from the fact book of the Nigerian stock exchange for the period covering 2006-2012 was used for the study. Two multiple regression models were statistically tested using panel least square method. The result of the empirical study carried out showed that dividend payout and dividend yield which are two important measures of dividend policy exert a significant negative influence on the market price of shares of Nigerian quoted companies. This was significant at 5% level. In addition, the study found that dividend paid to shareholders in Nigerian has a greater impact in the determination of the market price of shares than the earning streams of the companies and that the impact of dividend policy on share price differs from one sector to the other. The study therefore concluded that dividend policies matters in the shaping of the share price of Nigerian quoted companies and recommended amongst other things that managers of Nigerian quoted companies should ensure their dividend payouts ratios are reduced in the face of profitable investment opportunities so as to increase the company’s share priceItem Investment diversification and performance in the Nigerian banking industry(2018) Kasum, Abubakar Sadiq; Fagbemi, Temitope O.; Zakariyah, M. L.Investment diversification is an important process in risk management. It enable investors to considerably reduce their risk without compromising their return. One of the reasons that investment diversification is very important is because some commercial banks activities are also carried out by other institutions like discount houses and other non-bank financial. As a result of such harsh competition the profit margin of these financial institutions have reduced. This will leave the banks with no option than to seek alternatives if they must continue to survive. In view of this, the study examines the option investment diversification as an alternative to the very dynamically competitive environment that banks now find themselves. The study employed secondary data obtained from the financial statement of Nigerian banks. Panel least square regression technique was employed in the study. The results of the regression analysis revealed that investment diversification will improve the management of Nigerian banking industry. Conclusively, Losses in one sector or location can be compensated from the gain(s) obtained from other sector or location and therefore reduces the risk involve in investing in a very risky asset.