Effect of Dividend Policy on Stock Price in Quoted Oil and Gas Firms in Nigeria 2005-2024
Abstract
The study looked at how Nigerian oil and gas companies’ stock prices were affected by their dividend policies. Examining the impact of dividend yield, dividend pay-out ratio, and dividend per share on the stock price of Nigerian listed oil and gas companies was the specific goal. An ex-post facto research design was used in this investigation. All nine of the oil and gas businesses listed on the Nigerian Exchange Group are included in the study's population. For this study, a purposive sample of five (5) of the nine (9) enterprises was used. Financial statements from the studied companies from 2014 to 2023 were used to gather secondary data. Descriptive statistics were used by the researcher. Additionally, the Ordinary Least Square regression technique was used for inferential statistical analysis in order to test the study hypothesis. The findings revealed that: dividend pay-out has a non- significant negative effect on stock price of listed oil and gas firms in Nigeria (β = -0.029266; p-value = 0.9146); dividend yield has a non-significant effect on stock price of listed oil and gas firms in Nigeria (β = -1.185608; p-value = 0.8028); dividend per share has a non- significant effect on stock price of listed oil and gas firms in Nigeria(β = -0.034339; p-value = 0.8822). In conclusion, future growth and capital appreciation are typically given precedence over present dividend payouts by investors in the oil and gas industry. According to the report, rather than raising dividend payments, management of Nigerian listed oil and gas companies should place more emphasis on keeping a share of profits for investing in growth and operational projects. This method may assist long-term growth and positively influence stock values.
References
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