Effect Of Dividend Policy On Liquidity Of Banks In Nigeria ~ (A Study Of Union Bank And Diamond Bank)

Johnson Marvelous Nmesoma | 70 pages (21433 words) | Projects

ABSTRACT

This  study  examined    the  effect   of  dividend   policy  on  liquidity    of  banks   in Nigeria.    It was aimed  at ascertaining   the effect  of dividend  policy  on liquidity    of Union  and  Diamond   Banks in Nigeria.    The  objectives   of this  study  were  to determine    the effect  of Dividend   Yield   (DY), Dividend   Payout   (DPO),   Dividend   Per  Share  (DPS)   on  Current   Ratio  (CR)  of  Union   and Diamond    Banks  from  2008  to  2017.    Three  research   questions   and  three  hypotheses    guided the  study.    The   study  adopted   ex-post   facto   research   design.     Data  used  in   the  study   were secondary   data  collected   during  a time  period   of ten  years,   from  2008 to 2017,   from  annual reports  of the  selected   banks.  The  data  collected   were  tabulated   and  analyzed   using   multiple least   square   regression    model    and  results   of  the  study   revealed    that   Dividend    Yield    had positive     and   non-significant      effect   on   Current    Ratio   ( coefficient     of   Dividend      Yield     =0.027362;  p-value  = 0.9677),   Dividend   Payout  had  positive  and  significant   effect  on Current Ratio  (coefficient   of Dividend   Payout=   0.595060,   p-value  = 0.0262),  and Dividend    Per  Share had negative   and  non-significant    effect  on Current  Ratio  (coefficient    of Dividend    Per Share=-0.671891,     p-value   =  0.4008).  The   study   therefore   concludes    that  dividend     policy    shouldalways  consider   their  liquidity   ratios.   This  study  further  recommends    among  others  that  the associate    between   dividend   policy  and  liquidity   of firms  should  be recognized   by companies and   other    financial      institutions     in   the   banking     sector,    there    should     be   more    public enlightenment     through   seminars   by the relevant   regulatory    bodies  so as to disabuse  the minds of  top  investors    and  other  top  investors   in  the  company   from  unending   fear  as  regards   to dividend    payout.  It also   recommended    that further  studies  should  be carried   out to in different location,      using   different     statistical      tool    and   different    technique     to   help    ascertain    the significance    of this  study.


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APA

JOHNSON, N (2021). Effect Of Dividend Policy On Liquidity Of Banks In Nigeria ~ (A Study Of Union Bank And Diamond Bank). Mouau.afribary.org: Retrieved Oct 31, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-dividend-policy-on-liquidity-of-banks-in-nigeria-a-study-of-union-bank-and-diamond-bank-7-2

MLA 8th

NMESOMA, JOHNSON. "Effect Of Dividend Policy On Liquidity Of Banks In Nigeria ~ (A Study Of Union Bank And Diamond Bank)" Mouau.afribary.org. Mouau.afribary.org, 10 Mar. 2021, https://repository.mouau.edu.ng/work/view/effect-of-dividend-policy-on-liquidity-of-banks-in-nigeria-a-study-of-union-bank-and-diamond-bank-7-2. Accessed 31 Oct. 2024.

MLA7

NMESOMA, JOHNSON. "Effect Of Dividend Policy On Liquidity Of Banks In Nigeria ~ (A Study Of Union Bank And Diamond Bank)". Mouau.afribary.org, Mouau.afribary.org, 10 Mar. 2021. Web. 31 Oct. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-dividend-policy-on-liquidity-of-banks-in-nigeria-a-study-of-union-bank-and-diamond-bank-7-2 >.

Chicago

NMESOMA, JOHNSON. "Effect Of Dividend Policy On Liquidity Of Banks In Nigeria ~ (A Study Of Union Bank And Diamond Bank)" Mouau.afribary.org (2021). Accessed 31 Oct. 2024. https://repository.mouau.edu.ng/work/view/effect-of-dividend-policy-on-liquidity-of-banks-in-nigeria-a-study-of-union-bank-and-diamond-bank-7-2

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