You have no items in your shopping cart.
ABSTRACT
The influence of dividend policy on share price of enterprises listed on the oil and gas sector of the Nigerian Exchange Limited (NGX) was investigated in this study. Dividend policy key proxy variables were used in the study to determine the relationship between dividend policy and firm share price, namely dividend yield (DIY), dividend per share (DPS), and dividend payout (DPR), while share price (SP) was measured using market price of shares (SP). In the model definition, the study additionally controls for firm size (FZ). Three hypotheses were developed to lead the inquiry, and the parameter estimations were statistically tested using the OLS panel least model in Eviews 9.0. The study used a longitudinal research approach and data from the Nigerian Annual Reports and Accounts of listed oil and gas corporations in Nigeria from 2010 to 2021. The data show that dividend yield, dividend per share, and company size all have a substantial influence on the share price of the selected oil and gas companies. Based on this, the paper suggests that dividend policy has the potential to influence the share prices of Nigerian oil and gas companies. As a result, the analysis validates the relevant dividend policy theories discussed in this study, as irrelevant dividend theories do not hold in the instance of Nigeria. The research proposes, among other things, that corporations seeking to maximize share price boost their payout per share while decreasing their dividend yield, since this provides a signal to investors about the firm's market success and financial health.
