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