Open AccessIMPACT OF DIVIDEND PER SHARE ON SHARE PRICES OF SELECTED CONSUMER GOODS FIRMS LISTED IN THE NIGERIA STOCK EXCHANGE
Author(s) -
Egolum Priscilla. U,
Onyeogubalu Ogochukwu. N
Publication year - 2021
Publication title -
epra international journal of multidisciplinary research
Language(s) - English
Resource type - Journals
ISSN - 2455-3662
DOI - 10.36713/epra6489
Subject(s) - stock exchange , share price , dividend , stock (firearms) , business , empirical research , variables , monetary economics , dividend policy , economics , financial economics , dividend payout ratio , earnings per share , finance , mechanical engineering , philosophy , epistemology , machine learning , computer science , engineering
Prospective investors in the Stock Exchange desire empirical based analysis of firms’ performance to guide their investment decisions. This study examined the impact of quantitative factor, dividend per share (DPS) on determination of share prices of the selected consumer goods firms listed in the Nigeria Stock Exchange over the period 2009-2018. One hypothesis anchoring on the impact of independent variable DPS on the share prices was formulated for testing in this study. Judgmental sampling technique was adopted in the study. Annual financial statements of the selected firms were used for the study. Ratio analysis, correlation and linear regression models were used to measure the impact of the independent variable on the Share price (SP), the dependent variable. Paired sample t-test was used to test the hypotheses at 5% level of significance. The empirical findings show that, there is a positive correlation between the independent variable (DPS). DPS is accountable for about 21.7% changes in the share prices of consumer goods firms listed in the Nigeria Stock Exchange. Investors are enjoined to carefully scrutinize the trend in the DPS of the consumer goods company listed in Nigeria Stock Exchange among other variables before investing their funds; doing so will lead them to making good and viable investment decisions. Management of the consumer goods firms should also strive to operate optimal dividend policy that will not be detrimental to the share price of its organization.KEY WORDS: Dividend per share, share price, Stock Exchange, consumer goods firms.