Investigation study of the effectiveness of dividend policy in shareholders wealth in quoted Nigerian firms Department: Accountancy By: AdeleyeJoshua Project ID: 9377 Rating: (5.0) votes: 1Rate this project12345 Price:₦5000 Get the Complete MaterialAbstractThis study examines the effectiveness of dividend policy on shareholders' wealth in quoted Nigerian firms, using Dangote Cement Company as the case study. The objectives of this study are to determine whether the dividend payout ratio has any relationship with shareholders' wealth and to find out the effect of earnings stability on shareholders' wealth. The study adopted an ex-post factor design method. Data for the study were gathered from both primary and secondary sources. The population of the study is one hundred and forty (140) and the sample size is one hundred and four (104) using Taro Yamane's formula. The analysis was done using simple percentages, and hypotheses were tested using ANOVA and regression analysis. The findings reveal that the dividend policy of a firm has an effect on its shareholder wealth. A consistent and predictable dividend payout can be seen as a sign of financial stability and confidence in the company's future prospects, thereby enhancing the firm’s reputation. A higher dividend yield can attract income-focused investors, leading to increased demand for the stock and potentially driving the share price up, while a low dividend yield might deter some investors and decrease demand, potentially lowering the stock price. The study recommends that the board of directors should review the dividend policy of the companies operating under this environment to ensure maximum operation and ensure that they comply with relevant and required dividend policy. Management of companies should operate a dividend policy that will satisfy the needs of shareholders as well as the investment needs of the company and the financial managers of the company should ensure that dividend policy decisions taken will maximize shareholders' wealth and investment decision, need of the company should be considered along with the payment of dividends. ...Preview Download Preview +Other Accountancy project topics and materials you might be interested in»The Impact of Accounting Ratio in Decision Making ( A Case Study of Nigeria Breweries Plc Enugu) »The impact of budget and budgetary control in tertiary institutions ( A Case study of imo state university )»Internal control as a tool for improving profitability»The role of financial institutions in the development of Nigeria economy»Impact of computerization of accounting system of commercial banks ( A case study of union bank plc )»The Impact of product development on banks performance ( A Case study of first bank plc )»Effects of standard costing on the profitability of manufacturing companies (a case study of nigerian breweries plc, Ama, Udi local government of Enugu state) »The role of accounting system in measuring organizational performance of transport company ( A Case study of ABC Transport )»Role of good accounting system in the management of private enterprise in Nigeria ( A Case Study of Nwaogo pam paper mills limited )»The impact of development finance institutions (DFIS) in economic development of Nigeria»Auditing in Nigeria companies, problems and prospects»Effect of misrepresentation of information in a financial statement»Effective internal control as an aid to management efficiency ( Case Study of Nigeria Bottling Company Owerri )»The effects of computerized accounting system on the performance of banking industry in Nigeria»An appraisal of fraud prevention measures in Nigerian banking sector ( Case study of access bank plc owerri )