Citation:

Maryam Isyaku Muhammad, Benedict SOJE, Bilyaminu Yusuf Hanga. "Mediating Effect of Inflation on the Relationship between Dividend and Share Prices of Listed Firms in Nigeria" International Research Journal of Economics and Management Studies, Vol. 2, No. 2, pp. 130-137, 2023.

Abstract:

This study investigates the relationship between dividend and share price for listed firms in Nigeria as well as the mediating role played by inflation. Choosing a sample of the 75 NGX-listed firms for whom data were gathered and subjected to regression analysis and structural equation model (SEM). The results of the study demonstrate that dividends have a large beneficial impact on the share prices of firms listed on the Nigerian Exchange Group, and inflation does have a noticeable impact on this relationship. The study therefore recommends that companies wishing to improve the market value of their share should adopt a favorable dividend policy that encourage continuous improvement in the amount of dividend paid to shareholders.

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Keywords:

Dividend per share, Share price, Inflation.