Influence of Dividend Policy on Stock Price Volatility of Non-Financial Firms Listed Nigerian Stock Exchange
Influence of Dividend Policy on Stock Price Volatility of Non-Financial Firms Listed Nigerian Stock Exchange

Summary/Abstract: Stock Price Volatility with Dividend Policy pose relevant factors to aninvestor’s choice in stock investment. The focus of the study was intelligentview on the long-run and short-run causal significance of dividendmanagement on stock price volatility. Panel Auto Regressive DistributionLag was conducted on listed non-financial firms in Nigeria. The result showedthat Stock Price Volatility in the long-run based on a threshold of 1% level ofsignificance is significant as movement of Dividend Payout Ratio, DividendYield, Earnings Volatility and Firm Size causes about 0.15%, 0.76%, and0.008% increase and about 3% decrease respectively on change in stock priceon the long run while in the short-run, all the variables except EarningsVolatility have insignificant effect. The study recommended that low dividendpayout ratios at a stable rate serve as a good signal out to all investors forexpectation of returns which in turn increases firm value and stabilize stockprice.

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