DETERMINANTS OF DIVIDEND GROWTH PATTERN OF THE DEPOSIT MONEY BANKS IN NIGERIA (A STUDY OF SELECTED BANKS)
DETERMINANTS OF DIVIDEND GROWTH PATTERN OF THE DEPOSIT MONEY BANKS IN NIGERIA (A STUDY OF SELECTED BANKS)
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Date
2014-02-05
Authors
ABDULLAHI, M.
Role, Omanoba
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Abstract
ABSTRACT
The study titled “Determinants of Dividend Growth Pattern of the Deposit
Money Banks in Nigeria (A Case Study of Selected Banks)” was designed to
investigate factors that influence the dividend growth pattern of Nigerian
Deposit Money Banks. Using the confirmatory specification approach to
model development, the study estimates the relationship between three
explanatory variables – Earnings Per Share, Share Price, Inflation, and one
explained variable –Dividend Growth Pattern by means of the least squares
techniques. The population of the study is the 21 banks listed on the floor
of NSE as December, 2009. Total of 7 banks were selected based on
judgmental sampling technique adopted. Only secondary source of data was
employed and the technique utilized for data analysis is multiple regression
analysis. It was found that the three predictor variables- Earnings Per
Share, Share Price and Inflation have a significant influence on the
Dividend Growth Pattern of DMBs in Nigerian. The study also reveals that
Inflation has the highest determining ability on the Dividend Growth Pattern
of Deposit Money Banks in Nigeria followed by Earnings Per Share and
then the Share Price. The study recommends that the Management of banks
should improve their performance so as to: (1) increase earnings; (2) attract
investors in which the shares prices of the banks are expected to rise and (3)
Government policy should be directed at controlling inflation. These
recommendations are expected to positively affect Dividend Growth of
banks. Management of Deposit Money Banks should ensure persistent and
sustainable growth in their dividend payment to shareholders. This will go a
long way to retain the patronage of their existing customer while gaining the
heart of potential investors. The banks should also ensure stability in their
earnings since it is obvious that increase earnings increases growth in
dividend.
Description
BEING A THESIS SUBMITTED TO THE POSTGRADUATE
SCHOOL AHMADU BELLO UNIVERSITY ZARIA IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
THE DEGREE OF MASTERS OF SCIENCE (M.SC) IN
ACCOUNTING AND FINANCE OF AHMADU BELLO
UNIVERSITY, ZARIA.
Keywords
DETERMINANTS DIVIDEND, BANKS GROWTH PATTERN, DEPOSIT MONEY BANKS, NIGERIA