An Analysis of The Impact of Dividend Policy and Asset Structure on Firms’ Value Among Selected Banks Listed in The Nigerian Capital Market.

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MUNIRU HARUNA ACA, ACTI, CPFA, and ZAYYANU YAHAYA KWANDA

Abstract

The study on the paper titled “An analysis of the impact of dividend policy and assets structure of listed Commercial banks in Nigeria” examines quantitatively, how dividend policy and asset structure significantly influence the value of firms in the Nigerian Stock Exchange. The research used secondary data sourced from the Annual Reports and Financial Statements of the selected listed banks in Nigerian. The information was gathered over a five-year period from the Nigerian Stock Exchange Facts book and individual company accounts (2015, 2016, 2017, 2018 and 2019). The study consists of three (3) major or key variables; dividend policy, firms’ intrinsic value and the asset structure. Corporate performance indicators such as the dividend yield and market price to book value are used in measuring comparison with firms’ value. The study discovered that consistent payment of dividend would ultimately have significant influence on the performance of banks in the security market and the structure and value of assets influence the share value of companies in Nigeria. The study finally recommend that potential investors in stock and shares need to engage the service of investment analyst when making a decision to buy shares. This will aid investors in making a good investment decision. Furthermore, investors need to determine their primary objective as to whether maximization of profit or optimization of shareholders wealth is their target.

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