The study examined the effect of dividend policy on the market value of 24 listed insurance companies using empirical evidence from Nigeria.
Objectives of the study is to examine the effect of dividend per share (Dps), dividend pay-out ratio (Dpor), and dividend yield (Dy) on market value per share (Mvps), Net asset per share (Naps) and firm age. Hypotheses of the study were stated in line with the objectives. Data were obtained from financial statements of 10 Insurance firms listed in the floor of the Nigerian stock exchange.
The panel data covering a period of eight years from 2011 to 2018 were used. The regression model took the form of the Fixed Effects Model, Random Effects Model, and the Pooled Ordinary Least Square (POLS) model in order to establish the most appropriate regression with the highest explanatory power that is better suited to the data set employed in the study.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER ONE: INTRODUCTION
- CHAPTER TWO: REVIEW OF RELATED LITERATURE
- 2.1 Conceptual Framework
- 2.2 Theoretical Framework
- CHAPTER THREE: METHODOLOGY
- CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
- CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this research is to investigate the effect of dividend policy on the market value of listed financial institutions in Nigeria. This study aims to contribute to the existing body of knowledge on dividend policy and its impact on firm valuation within the Nigerian context.
- Dividend policy and its various forms
- Factors influencing dividend policy decisions in Nigerian financial institutions
- The relationship between dividend announcements and firm market value
- Empirical analysis of dividend policy's effect on market valuation
- Implications for investors and financial institutions in Nigeria
Zusammenfassung der Kapitel (Chapter Summaries)
CHAPTER ONE: INTRODUCTION: This chapter introduces the research topic, providing background information on dividend policy and its importance in the context of listed financial institutions in Nigeria. It clearly states the research problem, objectives, and hypotheses. The scope and limitations of the study are defined, along with the significance of the research and operational definitions of key terms. The introduction sets the stage for the subsequent chapters, laying out the framework for the entire research process.
CHAPTER TWO: REVIEW OF RELATED LITERATURE: This chapter presents a comprehensive review of existing literature on dividend policy and its impact on firm valuation. It explores various theoretical frameworks, including the relevance theory of dividend policy and the traditional models, examining different types of dividend payments and factors influencing dividend policy decisions. The chapter synthesizes existing research, identifying gaps in the literature and providing a foundation for the current research study's methodology and analysis. This chapter connects conceptual and theoretical understandings of dividend policy to create a comprehensive basis for the research project.
CHAPTER THREE: METHODOLOGY: This chapter details the research design, data collection methods, and analytical techniques employed in the study. It outlines the sample selection process, the variables used, and the statistical methods applied to analyze the data. The methodology section ensures the study's rigor and transparency, allowing readers to assess the validity and reliability of the findings. It provides a clear and replicable approach to the investigation.
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS: This chapter presents the findings of the empirical analysis, using appropriate statistical techniques to assess the relationship between dividend policy and market value. It systematically presents the collected data, followed by a detailed interpretation of the results. This chapter forms the core of the research, providing evidence to support or refute the hypotheses stated in the introduction. Clear visualizations and thorough explanations are crucial for understanding the key findings.
Schlüsselwörter (Keywords)
Dividend policy, market value, financial institutions, Nigeria, firm valuation, dividend announcements, empirical analysis, relevance theory, Nigerian stock market.
Frequently Asked Questions: Comprehensive Language Preview of Research on Dividend Policy and Market Value
What is the main topic of this research?
This research investigates the effect of dividend policy on the market value of listed financial institutions in Nigeria. It aims to contribute to the understanding of dividend policy's impact on firm valuation within the Nigerian context.
What are the key themes explored in this research?
Key themes include: various forms of dividend policy, factors influencing dividend policy decisions in Nigerian financial institutions, the relationship between dividend announcements and firm market value, empirical analysis of dividend policy's effect on market valuation, and implications for investors and financial institutions in Nigeria.
What are the chapters included in this research?
The research is structured into five chapters: Chapter One (Introduction), Chapter Two (Review of Related Literature), Chapter Three (Methodology), Chapter Four (Data Presentation and Analysis), and Chapter Five (Summary of Findings, Conclusion, and Recommendations).
What is covered in Chapter One: Introduction?
Chapter One introduces the research topic, providing background information on dividend policy and its importance in Nigeria. It states the research problem, objectives, and hypotheses, defines the scope and limitations, and explains the significance of the research. Key terms are operationally defined.
What is covered in Chapter Two: Review of Related Literature?
Chapter Two presents a comprehensive review of existing literature on dividend policy and its impact on firm valuation. It explores various theoretical frameworks, examining different dividend types and influencing factors. It identifies gaps in the literature to provide a foundation for the current research.
What is covered in Chapter Three: Methodology?
Chapter Three details the research design, data collection methods, and analytical techniques. It outlines the sample selection process, variables used, and statistical methods employed for data analysis, ensuring rigor and transparency.
What is covered in Chapter Four: Data Presentation and Analysis?
Chapter Four presents the empirical analysis findings, using statistical techniques to assess the relationship between dividend policy and market value. It systematically presents data and interprets the results, providing evidence to support or refute the hypotheses.
What is covered in Chapter Five: Summary of Findings, Conclusion and Recommendations?
Chapter Five summarizes the findings, draws conclusions based on the analysis, and provides recommendations based on the research results. (Specific content of this chapter isn't detailed in the preview.)
What are the keywords associated with this research?
Keywords include: Dividend policy, market value, financial institutions, Nigeria, firm valuation, dividend announcements, empirical analysis, relevance theory, and Nigerian stock market.
What is the objective of this research?
The objective is to investigate the effect of dividend policy on the market value of listed financial institutions in Nigeria.
- Quote paper
- Joan Onyinyechi Njoku (Author), 2021, Dividend Policy. The Effect on the Market Value of Financial Institutions in Nigeria, Munich, GRIN Verlag, https://www.grin.com/document/1159156
