Evaluation Of Dividend Policy On The Value Of The Firm

ABSTRACT

This study investigated the effect of dividend on value of the firm. It tends to identify types of dividend policy of firms in Abia State, to classify firms based on their dividend payout ratio. This study also tends to identify the determinants of dividend payment. Primary data were obtained through the use of questionnaires. Data obtained were analyzed with simple descriptive statistics such as table frequency and percentage, also multiple regression analysis was also used to analyze data that were obtained. It was found out in the study, among other things that dividend policy of a firm tends to affect the value of the firm. Also that profit after tax, location of a firm, amount invested, number of shareholders among others tends to determine the amount of dividend that a firm usually pays to their investors. It was therefore recommended in the study that the policy of regular dividend payout should not be changed arbitrarily since it has a serious effect on the investor’s attitude and the financial standing of the organization.