EuroEconomica, Vol 36, No 1 (2017)

Dividend Policy and Share Price Valuation in Nigerian Banks

Adesina Kehinde, Uwalomwa Uwuigbe, Uwuigbe Olubukola Ranti, Asiriuwa Osariemen, Sylvester Oriabe


This study examined dividend policy and share price valuation in the Nigerian banks. The study which covered a ten-year period made use of secondary data sourced from published financial statements of four major banks in Nigeria, namely; Access Bank, First Bank, United Bank for Africa and Guarantee Trust Bank. The study employed the Ordinary Least Square (OLS) regression model in the analyzing the data obtained. Findings from the study show that a significant positive relationship exist between earnings per share and market price. The study concluded that banks should put in place efficient and robust dividend policy and leverage on the new e-dividend payment initiative for a better performance. An amendment should be carried out on Company and Allied Matter Act (CAMA) 2004 as amended to compel any company with a total asset value in excess of N10billion to be listed on the Nigerian capital market with a view to attracting more investors. 


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