Board Characteristics, Dividend Policy and Shareholders’ Wealth of Listed Manufacturing Companies in Nigeria

doi:10.33423/jabe.v21i9.2682

Cited by 2 publications

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“…While some shareholders enjoy steady dividend payments, others would rather see their money reinvested in the company to reap larger dividends down the road. Therefore, the question of whether to pay dividends or retain them has been the subject of intense discussion over the past few decades given the goal of maximizing shareholders' wealth (David et al, 2022;Farrukh et al, 2017;Ifeanyichukwu & Yusuf, 2021;Aminu & Salawudeen, 2019;Khan et al, 2018;Ogunseye & Omaniyi, 2020;Ramcharran, 2001;Ramadan, 2013;Ullah et al, 2021). Dividend policy has been a topic of interest ever before joint stock corporations were established.…”

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confidence: 99%

The Impact of Initiating Dividend Payments on Shareholders’ Wealth: Evidence from Egypt

Amin Barakat

2024

IJEF

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Purpose – The goal of this study is to look into how signaling and dividend policy affect stock market values. Design/methodology/approach – Ten firms that are listed on the Egyptian Exchange (EGX-30) and (EGX-70) are taken as a sample for the period 2017-2021. Provided data on dividend announcement signaling over five years was computed using a 20-day window from the announcement date to the Ex-Coupon date for the specified duration. The study uses Eviews-12’s Generalised Method of Moments (GMM) for dynamic panel models to examine how dividend policy and signaling impact stock market prices are related. Findings – The findings reveal, that Dividend payments have a significant positive signaling effect on stock prices in the Egyptian Stock Market. Research limitations/implications – This study fills the research gap in the Egyptian context specifically, as well as globally by providing important insights into the relationship between a firm’s dividend policy and shareholders’ wealth. However, because this study is based in Egypt, the generalizability of the results would be limited. Practical implications – The study’s conclusions can assist business management in formulating dividend policies that will optimize shareholder wealth. Additionally, this study gives investors direction and information on which businesses to invest in to increase their wealth.

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Section: Introductionmentioning

confidence: 99%

The Impact of Initiating Dividend Payments on Shareholders’ Wealth: Evidence from Egypt

Amin Barakat

2024

IJEF

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Shareholders’ Dividend Preference in the Nigerian Capital Market

Salawudeen

Isa

Dandago

2022

International Journal of Management Studies

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Aside from the fact that no legislation requires, as we believe, that management has a distinct fiduciary commitment to shareholders, no act prioritizes the shareholder. The management’s fiduciary duty is solely to the corporation. Investors, on the other hand, have a votive claim to the corporation’s residual value once all other obligations have been met. The aim of this survey was to empirically investigate the dividend preference of shareholders in the Nigerian capital market with specific reference to listed manufacturing firms in Nigeria. The study used the design of an investigation using questionnaires and interviews. The target population was 500 shareholders selected based on stratified random sampling out of 682,100 shareholders that is 0.07 percent of the total population. The snowball sampling technique was used to recruit potential respondents from among the shareholders’ acquaintances. The study used a final sample size of 300 respondents from the shareholders. The validity and reliability of the instrument were tested using factor analysis and a Cronbach’s alpha coefficient of 0.72 was obtained. The mean ranking showed that shareholders do have significant dividend preferences which favor cash dividends and support a bird in the hand is worth two in the bush explanation. Given that in practice, shareholders prefer companies with stable and predictable dividend payments, this study could be used to correct and predict the direction of a company’s dividend payments and that the stability of dividend payments change over time.

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Board Characteristics, Dividend Policy and Shareholders’ Wealth of Listed Manufacturing Companies in Nigeria

Cited by 2 publications

References 23 publications

The Impact of Initiating Dividend Payments on Shareholders’ Wealth: Evidence from Egypt

The Impact of Initiating Dividend Payments on Shareholders’ Wealth: Evidence from Egypt

Shareholders’ Dividend Preference in the Nigerian Capital Market

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