EFFECT OF DIVIDEND PAYOUT ON SHARE PRICE BEHAVIOUR: EVIDENCE  FROM INSURANCE COMPANIES PANEL DATA

Authors

Kehinde Samson Oladejo School of Financial Studies, Department of Banking and Finance, The Federal Polytechnic Bida, Niger State
Mohammed Umar Dandadi School of Financial Studies, Department of Accountancy, The Federal Polytechnic Bida, Niger State
Ahmed Mohammed School of Financial Studies, Department of Accountancy, The Federal Polytechnic Bida, Niger State

Dividend payout, Share price, Insurance firms, Nigeria, Earnings Management

The dividend policy is a critical issue for all an organisation's stakeholders and is a vital

investment instrument. Therefore, this study examines the dividend payout on the share price of

listed insurance firms in Nigeria's stock exchange. The sample for the analysis consisted of all of

the insurance companies traded on the Nigerian Stock Exchange and had panel data spanning

2012/13 through 2017/18. The data were analysed using descriptive and inferential statistics

based on the findings of the multiple regression model used in this study. According to the study,

results, the most crucial factor is that dividends payout influences share price. Also, the firm size,

company age and sales growth affect the share price. According to the study's findings, dividends

play a significant part in the decision-making process for investors in Nigeria, and the dividend

The policies of the companies play an integral role in the decisions that investors make in Nigeria.