Brief Introduction

Dividend policy in general terms refers to the percentage of earnings that an enterprise can make in its internal financial decisions. The objective of choosing a dividend policy should be to maximize the returns made by an enterprise to its shareholders. Dividends, as it should be realized, are not limited to cash, it may involve some other items of assets. Soyode points out at a dividend encompasses the distribution of any asset or additional stock split dividends and other practices by which earning or assets can be distributed to shareholders. Dividends ate projects made by a corporation to its shareholders’ members. It is the portion of corporate profits paid out to stockholders.

When a corporation earns a profit or surplus, that money can be put to two uses; it can either be invested in the business called retained earnings or it can be paid to shareholders as a dividend many corporations retain a portion of their earnings and pay the remainder as a dividend for a joint-stock, a dividend is allocated as a fixed amount per share.

Therefore, a shareholder receives a dividend in proportion to their shareholding for the joint-stock company paying a dividend is not an expense rather, it is the division of an asset among shareholders companies usually pay dividends on a fixed schedule a special dividend to distinguish it from a regular according to members activity, so their dividends are considered to be pre-tax expenses.

Table of Contents

page
Title page
Certification i
Dedication ii
Acknowledgment iii
Abstract iv
Table of content v-vi

CHAPTER ONE: Introduction
1.1 Background of study 1
1.2 Statement of the research problem 3
1.3 Research objectives 4
1.4 Research questions 5
1.5 Research hypothesis 5
1.6 Significance of study 6
1.7 Scope of study 7
1.8 Definition of terms 8

CHAPTER TWO: Literature review
2.1 Conceptual review of study 10
2.2 Theoretical review of study 22
2.3 Empirical review of study 27

CHAPTER THREE: Research methodology
3.1 Introduction 38
3.2 Research design 38
3.3 Research population 38
3.4 Sampling techniques and sampling size 38
3.5 Method of data collection 39
3.6 Model specification 39
3.7 Measurement of variables 40
3.8 Method of analysis 40

CHAPTER FOUR: Data Presentation, Analysis, and Interpretation
4.1 Descriptive Analysis 42
4.2 Correlation Matrics 43
4.3 Effect of Dividend Policy on Stock Prices 44

CHAPTER FIVE: Summary, Conclusion, and Recommendation
5.1 Summary of research finding 46
5.2 Conclusion 46
5.3 Recommendation 48

BIBLIOGRAPHY 50
APPENDIX 53-54