Research Journal of Finance and Accounting wwwiisteorg ISSN 2222 1697 Paper

Research journal of finance and accounting

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for decision making will be realistic.
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Research Journal of Finance and Accounting ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) Vol.7, No.3, 2016 24 CONCLUSION AND RECOMMENDATION Dividend is that portion of the after tax profit that is distributed to shareholders on a pro-rata basis (Agarwal, 1991); there are various factors that affect the payment of dividend such as: liquidity, government policy, investment decisions, taxation among others. Difference schools of thought have contributed to identify the relevance of dividend policy in determining the value of a firm. The empirical result in our analysis revealed that dividend per share have an inverse relationship with the share price in the stock market; this result is in agreement with the empirical analysis done by so many scholars in the field of finance; though, earnings per share have shown a predominant features in enhancing the value of a firm. The ordinary least square result shows both positive and significant relationship between earnings per share and stock market prices while internal rate of return is both inverse and insignificant to the stock price movement in the stock market. It is therefore recommended that financial managers should always implement decisions that will adjust the equity- debt structure in the balance sheet in order to enhance the earnings per share, as every rational investor tend to used the earnings per share as rationale in valuing the company which will be reflected in the share price of the firm. Consistency in dividend payment cannot be over-emphasis as a key factor used by investors and shareholders to determine the value of the company. REFERENCES Agarwal R N (1991), “Dividends and Stock Prices: A Case Study of Commercial Vehicle Sector in India 1966-67 to 1986-87”, Indian Journal of Finance and Research ,(1),61-67. Aivazian Varouj, Booth Laurence, Cleary Sean ( 2003), “Dividend policy and the organization of capital market”, Journal Of Multinational Financial Management ,101-121 Aivazian, V, and Booth, L(2003), “Do emerging firms follow different dividend policies from US firms.?”, Journal of Financial research, (26)3,371-387. Allen Franklin and Michael Roni (April, 2002) Payout Policy, North-Holland handbook of Economics and Finance, Wharton Financial Institutions center. Amidu, Mohammed, and, Abor Joshua (2006), “Determinants of Dividend payout ratios in Ghana”, The Journal Of Risk Finance,(7) 2,136-145 Asquith, P. and Mullins, D. (1983), ‘‘The impact of initiating dividend payments on shareholders ‘wealth’’, Journal of Business, (56),77-96. Baker, H.K. (1999), “Dividend Policy issues in regulated and unregulated firms: a managerial perspective”, Managerial Finance, (25)6, 1-19. Baker,H.Kent, Garry E.Powell., Theodore E. Veit (2001), “Factors influencing dividend policy decisions of Nasdaq firms”, The Financial Review,19-38 Baker,H.Kent,and Garry E.Powell.,(2000) ,“Determinants of corporate dividend policy: a survey of NYSE firms” , Financial Practice and education (9),29-40 Black, Fischer, “The Dividend Puzzle”, The Journal of Portfolio Management, winter 1976, 634-639. Brown S J and Warner J B (1980), “Measuring Security Price Performance”, Journal of Financial Economics , (8), 205-258.
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