IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 7 2024
DOI: 10.56201/jafm.v10.no7.2024.pg111.121

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Effect of Dividend Policy on Investment Return of Agricultural Firms in Nigeria: A Behavioral Finance Perspective

Gina Olufemi and Aikowieren Efe Blessing s:

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Abstract

This study ascertained the effect of dividend policy on stock return of Agricultural firms in Nigeria, using Dividend Yield and Dividend Payout Ratio as the independent variables. Data were generated from annual reports and accounts of the sampled firms from 2017 to 2022. Multiple regressions were employed to test the hypotheses. From the analysis, it was found that dividend payout ratio has insignificant positive effect on stock return of agricultural firms in Nigeria at 5% level of significance. On the other hand, the study revealed that dividend yield has negative and significant effect on stock return of agricultural firms in Nigeria at 5% level of significance. On that basis, the study made a recommendation for the regulatory agencies, managers, businesses, and investors that companies need to ensure regular payment of dividend as stocks with high and regular dividend payout ratios always attract the attention of investors.

keywords:

Dividend Yield, Dividend Payout Ratio and Stock return

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