Dividend per share and value of construction/real estate and conglomerate companies quoted in Nigeria

Dividend per share and value of construction/real estate and conglomerate companies quoted in Nigeria

Author by Dr. Folajimi Festus Adegbie

Journal/Publisher: Journal Of Critical Reviews

Volume/Edition: 7

Language: English

Pages: 4352 - 4359

Abstract

Gaining firm value in the competitive market is linked to the ability of the firms to grow
earnings. Studies have shown that investors are desirous of appropriate management of portfolios for rational
decision of investment retention or diversification in analyzing the performance of firms. The study evaluated
the effect of dividend per share on the value of construction/real estate and conglomerate companies quoted in
Nigeria. The study adopted an ex-post facto research design. Using total enumeration sampling technique, the
population and sample size consisted of eight construction/real estate and five conglomerate companies in
Nigeria. Descriptive and Inferential (regression) statistics were used to analyze the data. From the findings, the
descriptive statistics show a disparity between the mean and standard deviation of both dividend per share and
market capitalization (value of the firm).The result of the inferential statistics found that there is a strong effect
of dividend paid per share on the value of the firms in the securities market ?=0.436,t-statistics=16.554 (104);pvalue=0.000.The study concluded that dividend paid has effect on the value of the firms in the securities market.
The study recommended that the management of these companies should adopt financial strategy that will
enable growth of earnings in the firms that will lead to constant payment of dividend to owners. The
management should also adopt shareholders and signaling theories to engender adequate disclosure of
information to the market to guide shareholders and potential investors in decision making
 


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