THE IMPACT OF DIVIDEND POLICY AND EARNINGS ON STOCK PRICES OF NIGERIA BANKS

THE IMPACT OF DIVIDEND POLICY AND EARNINGS ON STOCK PRICES OF NIGERIA BANKS BY ANIKE, ESTHER AMUCHE PG/M.SC/09/53718 DEPARTMENT OF BANKING AND FINANCE FACULTY OF BUSINESS ADMINISTRATION UNIVERSITY OF NIGERIA NSUKKA FEBUARY, 2014 THE IMPACT OF DIVIDEND POLICY AND EARNINGS ON STOCK PRICES OF NIGERIA BANKS BY ANIKE, ESTHER AMUCHE PG/M.Sc/09/53718 A DISSERTATION SUBMITTED TO THE DEPARTMENT OF BANKING & FINANCE, FACULTY OF BUSINESS ADMINISTRATION IN PARTIAL FULLFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF SCIENCE(M.Sc) DEGREE IN BANKING AND FINANCE SUPERVISOR: PROF C UCHE FEBUARY, 2014 DECLARATION I, Anike Esther Amuche, with registration number PG/M.Sc/09/53718, a postgraduate student in the Department of Banking and Finance hereby declare that this work embodied in this Dissertation is original and has not been submitted in part or in full for any other diploma or degree of this or any other University _ STUDENT Anike, Esther Amuche APPROVAL This dissertation has been approved for the Department of Banking and Finance By SUPERVISOR Prof C Uche _ HEAD OF DEPARTMENT Dr J.U.J Onwumere DEDICATION I dedicate this work to my father in heaven, the Almighty God who makes all things possible and does things at His appointed time.To you, oh Lord, be all the glory and adoration for your Love and Sufficiency ACKNOWLEDGEMENTS It’s a thing of joy to know that someone cares for me To this, I wish to express my overwhelming joy to all those whose advice, encouragement, prayer, care and love have made me a success First, I want to acknowledge my amiable supervisor Prof.C.Uche, for his assistance throughout the course of this research work, particularly his patience, tolerance and his invaluable devotion to this work My profound gratitude also must go to Dr Austin Ujunwa, who created time out of his tight schedule to assess my work properly To my H.O.D Dr J.U.J Onwumere and all my lecturers, Dr.Mrs O.P.Egbo, Dr.Chikeleze, Dr Mrs N.J Modebe, Dr C Nwude, who groomed me towards attaining this height, I say thank you I must say thanks to all the staff in the department of Banking and Finance, among who are Mrs.Aneke, Mrs Anakwenze, and Aunty Chika My big nephew, Mr Alum Martins (Igbudu na-Nike), who has been a true brother indeed, whose anchor by the grace of God has made the sky my starting point I will not fail to thank the couple who God used to encouraged me, Engr and Mrs Beloved-Dan Obi-Anike, Dr Ekette Maurice My family has been wonderful, for their timeless love prayers especially my lovely Mum, Mrs Anikeokwor Josephine, my brother, Hon Anike Eugene, my aunts Ozo, Appolo and my sisters, Iyke-Ikpa Caroline, Anike Virginia and Okolo Nwanneka My typist, Blessing, who faithfully reproduced this work from mostly hand-written manuscript as a service of love My thanks as well go to all the Staff and Management of Nigeria Stock Exchange Onitsha, Anambra State., whose assistance provided the data for my analysis and findings Worthy of acknowledging are my friends whose encouragement gave my world a meaning Notable among them are: Ujunwa Angela (Mrs),Ubagwu Charles, Ageme Tony, Anyaoku Emeka P, Nsofor Ebere, Ihuoma Ajuonuma, Mrs Onuseluogu Oddi, Mrs.Nkwonta Uzomaka, Imo G Ibe, Offor Nneka, Mrs Okolo Alice to mention but a few I love you all Above all, I appreciate the giver of wisdom,the Excellency, the Ever Present help in time of need, the merciful and gracious Father Thank YOU LORD ANIKE ESTHER AMUCHE DEPARTMENT OF BANKING AND FINANCE UNEC TABLE OF CONTENTS Title Page - - - - - - i Declaration - - - - - - ii Approval Page - - - - - - iii Dedication - - - - - - iv Acknowledgement - - - - - - v List of Tables - - - - - - ix Abstract - - - - - - x CHAPTER ONE INTRODUCTION 1.1 Background of the Study - - - - - 1.2 Statement of Problem - - - - - 1.3 Objectives of the Study - - - - - 1.4 Research Questions - - - - - 1.5 Research Hypotheses - - - - - 1.6 Scope of the Study - - - - - 1.7 Significance of the Study - - - - - - - - - 10 References CHAPTER TWO REVIEW OF RELATED LITERATURE 2.1 Dividend Policies And Earnings 2.2 Types of Dividends - - - - - 17 2.3 Methods of Dividend Payment - - - - 18 2.4 Dividend Announcements and Stock Returns- - 19 2.5 Dividend Policy and Asymmetric Information - - 21 2.6 Stock Prices and Dividend Announcements - - - 23 2.7 Stock Prices, Dividends And Semi-Strong Market Efficiency 25 2.8 Stock Splits on Price And Liquidity - - - - 26 2.9 Corporate Dividend Policy Determinants - - - 27 2.10 Shareholders Earnings (EPS) and the Firm - - - 29 References CHAPTER THREE RESEARCH METHODOLOGY 3.1 Research Design - - - - - 40 3.2 Nature and Sources of Data - - - - - 40 3.3 Population and Sample Size - - - - - 40 3.4 Model Specification - - - - - 41 3.5 Model Justification - - - - - 42 3.6 Description of Research Variables - - - - - 43 - - - - - 43 - - - - 43 3.6.1 Dependent Variable 3.6.2 Independent Variables - 3.6.3 Control Variables - - - - - 44 3.7 Techniques of Analysis - - - - - 44 References CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA 4.1 Presentation of Data - - - - - 47 4.2 Test of Hypotheses - - - - - 50 4.2.1 Test of Hypothesis One - - - - - 50 4.2.2 Test of Hypothesis Two - - - - - 51 4.2.3 Test of Hypothesis Three - - - - - 53 4.3 Comparaism Of Results with Objectives - - - - 54 4.3.1 Objective One: To determine the impact of dividend yield on stock - 54 - 55 - 55 prices of Nigerian banks 4.3.2 - - - Objective Two: To determine the impact of earnings yield on stock prices of Nigerian banks 4.3.3 - - - - Objective Three: To determine the impact of dividend payout ratio on stock prices of Nigeria banks - - - - Reference CHAPTER FIVE SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of Findings - - - - - 59 5.2 Conclusion - - - - - 59 5.3 Recommendations - - - - - 60 5.4 Contributions to Knowledge - - - - - 61 Bibliography LIST OF TABLES Table 4.1 Panel Data of Model Proxies - - - 47 Table 4.2 Descriptive Statistic - - - 50 Table 4.3 Regression Result of Hypothesis One - - - 52 Table 4.4 Regression Result of Hypothesis Two - - - 53 10 UBA 11.90 11.80 12.81 12.57 13.48 15.00 14.84 20.50 23.69 26.50 22.00 25.31 210.40 UNION 25.48 25.48 26.28 26.48 23.48 30.00 27.80 29.32 24.10 24.50 22.00 22.92 307.84 UNITY 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 30.00 WEMA 3.74 3.74 3.74 3.74 3.74 3.06 2.28 3.52 2.67 2.97 2.89 3.20 39.29 ZENITH 19.64 19.64 19.64 19.64 19.64 21.23 27.00 23.67 25.01 24.00 22.39 24.40 2007 JAN FEB MAR ACCESS AFRI PHB DIA ECO FIDEL FIRST FCMB FIN GTB INTER OCEAN IBTC SYKE SPRING STERL UBA 6.50 7.78 3.50 8.00 7.20 3.06 30.06 6.15 3.10 14.00 6.30 5.48 3.10 3.12 1.10 1.01 10.4 6.47 7.78 3.50 7.20 7.20 3.06 35.30 6.15 3.10 14.80 7.10 5.42 3.10 3.12 1.10 1.01 10.4 6.45 7.50 3.50 8.90 7.18 3.04 35.00 3.50 3.10 17.20 7.82 5.99 3.10 3.12 1.10 1.01 10.45 APR 6.34 7.73 3.60 7.30 8.20 3.06 41.80 4.00 2.90 18.00 7.79 6.48 5.01 3.12 1.10 1.01 11.8 MAY JUN E JUL Y 6.40 7.45 3.60 7.48 6.99 3.06 45.85 3.72 2.99 12.40 7.90 7.67 5.00 3.12 1.10 1.01 13.32 6.62 5.85 3.60 8.15 5.91 3.06 47.30 4.28 4.54 13.95 7.90 7.01 5.44 3.12 1.10 1.01 14.89 6.30 5.89 2.40 7.76 5.82 3.01 50.80 4.57 5.01 13.82 12.91 8.77 5.62 3.12 1.10 1.01 14.75 AUG SEP T OCT NOV 7.15 8.01 2.71 6.10 5.72 2.71 30.73 4.29 4.68 17.45 15.84 10.88 5.70 3.00 1.10 1.01 18.8 6.98 9.98 19.60 8.00 5.89 2.48 28.71 5.10 4.79 17.60 15.85 11.98 5.98 3.12 2.85 2.74 18.99 8.80 9.98 2.39 7.89 5.10 2.25 31.52 4.38 4.20 15.94 15.85 14.18 6.40 3.12 2.51 3.95 21.98 9.20 9.98 1.96 7.81 5.00 2.17 39.72 4.91 3.87 15.96 12.99 12.86 6.42 4.99 6.88 3.68 25.02 DEC 9.00 9.75 3.05 7.39 5.15 2.26 35.60 5.10 3.38 16.99 12.39 14.89 6.98 16.01 6.88 3.40 25.49 265.90 TOTAL 86.21 97.68 53.41 91.98 75.36 33.22 452.39 56.15 45.66 188.11 130.64 111.61 61.85 52.08 27.92 21.85 196.29 87 UNION UNITY WEMA ZENITH 23.28 2.50 2.99 14.64 23.27 2.50 2.99 14.64 24.31 2.50 2.99 14.64 2008 JAN FEB MAR 24.31 2.50 3.50 14.64 APR 24.31 2.50 3.50 14.91 29.79 2.30 3.38 18.98 26.78 2.30 2.01 19.48 30.01 2.30 3.69 17.54 21.76 2.30 3.30 23.8 MAY JUN JULY AUG SEP T 21.91 2.30 3.01 23.69 OCT 19.88 2.30 3.0 23.04 NOV 20.3 2.30 3.40 23.65 DEC 289.91 28.60 37.76 223.65 TOTAL ACCESS 23.99 24.96 24.01 19.00 19.18 17.64 15.98 13.30 11.63 7.99 7.41 7.07 192.16 AFRI 26.00 26.98 26.50 24.89 25.10 24.24 25.50 25.70 21.77 15.48 11.01 9.61 262.78 PHB 28.99 31.86 28.80 28.55 16.00 15.73 16.83 12.14 12.71 8.89 7.81 8.59 216.90 DIA 21.50 21.50 18.50 19.00 17.99 16.86 15.90 12.78 11.51 7.91 7.85 7.46 178.76 ECO 7.95 7.95 7.95 7.95 9.22 7.87 7.10 5.60 9.32 27.96 27.96 27.96 154.79 FIDEL 11.20 11.80 10.70 10.99 10.00 10.20 8.80 8.12 7.33 4.98 5.05 4.69 103.86 FIRST 40.91 50.00 47.24 41.02 41.90 42.77 43.68 32.05 27.76 20.10 22.23 21.11 430.77 FCMB 19.59 19.50 18.50 17.30 16.85 14.95 16.50 13.19 11.15 7.81 5.89 6.00 167.23 FIN 13.30 13.30 10.80 10.98 9.43 8.34 7.60 6.61 7.04 5.01 5.96 4.45 102.82 GTB 34.45 36.50 34.99 33.95 32.00 28.11 25.30 23.15 21.36 14.61 15.52 12.90 312.84 INTER 40.97 45.00 45.50 45.55 24.71 25.01 23.80 20.46 20.03 13.70 13.00 12.05 329.78 OCEAN I 27.00 28.51 27.30 26.05 23.00 29.92 20.98 17.75 16.41 11.58 8.89 10.24 247.63 88 BTC 22.56 22.50 22.33 18.05 44.65 34.06 32.71 28.94 24.73 17.06 12.90 12.94 293.43 SYKE 16.84 16.84 17.40 16.90 5.59 5.59 5.59 5.59 5.59 5.59 5.59 5.59 112.70 SPRING 5.59 5.59 5.59 5.59 18.00 16.39 14.55 12.14 11.88 8.56 10.50 10.90 125.28 STERL 7.28 7.28 7.28 7.28 7.64 6.61 6.65 6.65 5.45 4.13 3.09 2.42 71.76 UBA 49.55 50.75 50.10 54.70 57.00 32.99 31.95 28.72 25.45 17.39 17.40 13.15 429.15 UNION 43.01 44.00 43.50 36.99 38.06 36.36 42.00 42.00 42.00 29.79 17.10 15.20 430.01 UNITY 8.11 9.02 8.20 6.95 6.21 5.31 5.25 3.92 4.48 3.17 3.21 2.86 66.69 WEMA 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 14.29 14.29 14.29 177.87 ZENITH 46.09 50.00 48.00 46.99 47.00 43.45 41.05 41.67 36.66 25.02 22.98 22.00 470.91 2009 JAN FEB MAR APR MAY JUN JUL Y AUG SEP T OCT NOV DEC TOTA L ACCESS 3.72 5.52 4.85 5.65 10.34 8.62 6.41 6.29 6.13 6.49 6.67 7.60 78.29 AFRI 6.30 7.74 5.61 5.18 8.97 7.20 6.60 5.22 3.10 2.66 2.12 2.55 63.25 PHB 3.44 5.30 5.73 5.23 8.87 6.10 5.49 3.42 3.51 2.29 1.96 1.32 52.66 DIA 4.14 5.64 4.76 4.85 9.95 8.19 7.97 6.27 9.10 7.60 6.75 7.40 82.62 ECO 27.96 27.96 27.96 27.96 27.96 27.96 27.96 27.96 22.80 18.59 14.42 10.63 290.12 FIDEL 3.36 3.14 2.86 2.30 4.41 3.30 2.77 2.04 1.80 2.15 2.41 2.31 32.85 89 FIRST 14.38 17.20 15.80 15.49 23.68 20.98 16.00 14.25 14.89 14.85 14.00 14.00 195.52 FCMB 4.15 4.45 3.90 5.75 7.67 8.11 6.92 5.45 6.38 6.45 6.95 7.06 73.24 FIN 2.73 2.55 2.22 2.30 3.13 2.67 1.96 1.58 1.03 1.01 0.70 0.51 22.39 GTB 8.66 11.30 9.92 12.76 13.53 13.35 14.04 13.87 14.20 15.50 15.29 15.07 157.49 INTER 6.04 8.04 6.50 8.20 12.65 6.93 4.05 2.94 2.28 1.54 75.19 OCEAN 6.20 7.53 4.27 6.90 10.46 7.02 6.27 4.94 2.95 2.51 2.10 1.61 62.76 IBTC 5.55 7.22 6.30 4.00 6.81 7.06 8.37 7.45 7.00 7.80 7.13 7.12 81.81 SYKE 5.59 5.59 5.59 5.59 5.59 6.42 6.20 4.30 4.48 4.98 5.46 5.40 65.19 SPRING 4.27 5.39 5.30 6.25 9.97 5.59 5.59 5.59 3.32 1.55 1.02 0.79 54.63 STERL 1.49 1.97 1.11 1.60 2.65 1.96 1.50 1.45 1.28 1.20 1.20 1.19 18.60 UBA 6.67 9.80 8.00 10.71 16.59 12.91 14.69 12.20 11.10 10.70 137.57 UNION 9.78 13.28 10.10 11.40 18.82 17.07 13.96 12.60 6.59 7.30 6.07 5.72 132.69 UNITY 1.78 1.70 1.05 1.31 2.82 2.03 1.63 1.22 1.17 1.06 0.90 0.80 17.47 WEMA 14.29 9.04 4.70 2.09 4.00 3.59 2.13 1.70 1.12 1.32 1.05 0.89 45.92 ZENITH 12.10 15.00 11.77 14.40 26.46 3.64 14.50 11.83 12.71 14.30 13.07 13.39 163.17 9.57 6.45 12.8 11.40 90 2010 JAN FEB MAR APR MAY JUN JULY AUG SEP T OCT NOV DEC ACCESS AFRI PHB DIA ECO FIDEL FIRST FCMB FIN GTB INTER OCEAN IBTC SYKE SPRING STERL UBA UNION UNITY WEMA ZENITH 8.23 2.82 2.22 8.40 8.24 2.51 14.72 8.85 0.77 17.79 2.30 2.30 8.30 6.79 1.12 1.69 12.45 8.45 1.00 1.13 15.31 9.10 2.70 1.91 9.35 5.99 14.56 14.56 9.20 0.69 18.06 2.00 2.06 8.45 7.36 0.96 1.73 13.01 6.05 1.15 1.15 15.71 10.18 2.83 1.73 9.80 7.04 3.48 15.91 9.00 0.73 20.94 1.99 2.02 11.09 8.30 0.95 2.55 14.91 6.09 1.04 1.05 19.01 8.78 2.19 1.3 7.70 5.50 2.71 15.50 7.37 0.59 18.14 1.63 1.72 8.57 7.38 1.02 1.85 11.22 5.69 0.99 1.11 14.70 8.13 2.13 1.52 7.77 5.29 2.85 14.32 7.76 0.52 17.25 1.80 1.63 10.85 8.29 0.86 2.00 11.05 5.56 1.11 1.17 13.50 8.10 1.96 1.33 7.55 4.70 2.67 13.17 8.30 0.52 16.85 1.58 1.65 10.07 8.05 0.63 1.83 10.78 4.98 1.11 0.99 13.80 9.09 2.08 1.49 7.51 4.60 2.53 13.40 7.89 0.58 16.80 2.25 1.97 9.10 7.30 0.66 2.16 10.50 5.63 1.11 1.08 14.31 8.14 1.89 1.18 6.30 4.50 2.31 12.90 6.50 0.51 15.40 1.72 1.54 8.93 7.10 0.84 1.95 9.13 4.95 1.06 0.89 12.57 8.38 1.34 0.95 6.36 3.59 2.28 11.0 5.53 0.50 14.59 1.29 1.08 7.50 7.54 0.56 1.45 9.45 3.63 0.70 0.84 12.36 8.38 2.17 1.4 7.90 3.70 2.4 12.90 6.95 0.66 17.00 1.98 2.31 9.00 7.30 0.75 1.87 9.00 4.09 1.09 1.17 13.17 9.21 2.50 1.97 7.96 3.60 2.48 12.95 7.90 0.87 15.50 2.26 2.52 9.20 8.30 1.04 2.19 8.80 4.59 1.25 1.39 14.59 7.60 2.18 1.75 7.50 3.60 2.69 13.73 7.50 0.73 17.76 2.16 2.50 9.20 8.80 0.91 2.34 9.15 4.20 1.20 1.29 15.01 TOTAL 103.32 26.79 18.75 94.10 60.35 43.47 165.06 92.75 7.67 206.08 22.96 23.30 110.26 92.51 10.30 23.61 129.45 63.91 12.81 13.26 174.04 91 APPENDIX MODEL PROXIES 92 BANKS ACCESS AFR PHB DIAMD ECO YRS TMPS SP DPS 45.09 3.76 87.21 7.27 192.2 16.01 0.4 78.29 6.52 0.65 103.3 8.61 0.20 111.1 9.25 6.50 97.68 8.14 0.70 262.8 21.90 0.45 49.01 4.08 6.50 53.41 4.45 0.70 216.9 18.08 0.45 52.66 79.55 4.39 6.63 0.36 91.98 7.67 0.55 178.8 14.9 0.56 82.62 6.89 1.64 94.1 7.84 0.96 58.41 4.87 75.36 6.28 0.24 154.8 12.9 0.7 290.1 24.18 0.24 60.12 5.03 0.15 31.63 2.64 0.22 33.22 2.77 0.32 103.9 8.67 0.60 Dyield 0 40.025 10.031 43.05 1.4231 11.629 48.667 0.6277 6.3571 40.178 18.417 13.945 26.607 4.2012 8.1667 26.167 18.429 100.75 FIDTY 33.533 12 8.6563 14.45 EPS 0.7 0.87 0.17 1.41 0.72 0.13 1.19 2.46 0.13 1.19 2.46 -20 0.57 0.89 1.10 0.48 0.45 0.27 0.34 0.64 0.12 0.19 0.25 0.45 Eyield 5.3714 8.3563 94.1765 4.6241 11.9583 71.1538 6.8403 8.9024 31.3846 3.7395 7.3496 -0.2201 11.6316 8.6180 13.5455 14.3542 17.4222 18.0370 18.4706 0.0000 POR 0.0000 0.0000 0.4250 2.1692 3.6000 0.0200 1.7000 5.4667 0.0200 1.7000 5.4667 0.0000 1.5833 1.6182 1.9643 0.2927 0.4688 0.0000 1.4167 0.0000 OUTSHARES 13,956,321,723 6,978,160,860 16,142,501,847 16,214,258,437 17,888,251,478 5,108,433,332 5,108,433,332 6,130,119,998 19,305,974,000 6,435,024,000 15,154,993,500 20,104,994,000 7,603,608,000 9,399,914,000 13,159,313,000 14,475,244,000 14,475,244,000 21,654,226,926 21,654,226,926 7,218,075,141 MKT CON 3,711,787,691.00 959,857,065.00 1,008,276,192.00 2,486,849,452.00 2,077,613,411.00 552,263,063.00 627,571,663.00 279,914,155.00 4,731,856,373.00 1,446,072,809.00 838,218,667.00 4,579,725,285.00 1,146,848,869.00 1,225,542,894.00 883,175,369.00 2,110,906,241.00 1,846,332,143.00 4,446,453,166.00 3,448,125,306.00 559,540,709.00 MC 0.0199 0.0051 0.0054 0.0133 0.0111 0.0199 0.0034 0.0015 0.0253 0.0077 0.0045 0.0245 0.0061 0.0066 0.0047 0.0113 0.0099 0.0238 0.0185 0.0030 298,514,295.00 -37.7813 41.9167 13.8947 11.0800 19.2667 -2.6667 0.8000 0.8636 0.7813 0.7500 7,218,075,642 13,879,951,642 16,463,686,588 16,463,686,588 28,962,585,691 TOTAL ASSETS 174,553,866,000 328,615,194,000 1,043,465,021,000 674,865,041,000 726,960,580,000 138,047,000,000 187,079,000,000 352,270,000,000 158,861,195,000 378,949,309,000 1,036,586,074,000 558,043,831,000 223,047,862,000 312,249,721,000 603,326,540,000 650,891,836,000 548,402,560,000 132,091,706,000 311,395,894,000 432,466,245,000 6,236,244,917.00 5,943,569,162.00 3,340,551,983.00 11.2419 11.5167 12.0185 11.8292 11.8615 11.1400 11.2720 11.5469 11.2010 11.5786 12.0156 11.7467 11.3484 11.4945 11.7806 11.8135 11.7391 11.1209 11.4933 11.6360 355,662,000,000 0.0016 2,759,433,726.00 BK SIZE 0.0148 0.0334 0.0318 0.0179 11.5510 454,239,000,000 119,985,801,000 217,144,465,000 533,122,233,000 11.6573 11.0791 11.3367 11.7268 93 32.85 2.74 0.5 43.47 3.62 0.14 37.86 3.16 0.11 45.66 3.81 102.8 8.57 491.7 40.97 1.00 452.4 37.7 1.20 430.8 35.9 1.35 195.5 16.29 0.10 165.1 13.75 0.60 91.88 7.66 0.13 56.15 4.68 0.35 167.2 13.94 0.50 73.24 6.1 0.50 92.75 7.73 0.50 188.7 15.72 0.70 188.1 15.68 1.03 312.8 26.07 0.75 157.5 13.12 1.00 206.1 17.17 1.00 151.4 12.61 0.45 130.6 10.89 0.65 329.8 27.48 0.75 116.8 9.74 0.42 111.6 9.30 1.02 247.6 20.64 FIN FIRST FCMB GTB INTER OCEAN 5.48 25.857 28.727 0 40.97 31.417 26.593 162.9 22.917 58.923 13.371 27.88 12.2 15.46 22.457 15.223 34.76 13.12 17.17 28.022 16.754 36.64 23.19 9.1176 0.8 0.20 1.07 0.27 0.10 2.69 1.56 2.23 1.41 0.83 0.36 0.61 1.23 0.21 0.45 1.45 1.63 1.73 1.28 1.57 1.10 1.38 1.83 103 147 10.9 3.4250 18.1000 1.6000 1.4286 28,962,585,691 28,962,585,691 1,057,028,675.00 8,000,714,279.00 0.0057 0.0429 2,396,354,430.00 -2.9533 14.1111 85.7000 15.2305 24.1667 16.0987 11.5532 16.5663 21.2778 7.6721 11.3333 29.0476 17.1778 10.8414 9.6196 15.0694 10.2500 10.9363 11.4636 7.8913 15.0164 0.0949 0.0632 -9.7273 0.0000 0.0000 2.6900 1.3000 1.6519 14.1000 1.3833 2.7692 1.7429 2.4600 0.4200 0.9000 2.0714 1.5825 2.3067 1.2800 1.5700 2.4444 2.1231 2.4400 244.3571 144.2843 9,688,630,000 9,688,630,000 6,789,750,500 5,237,930,699 1,047,769,537 1,988,841,297 2,486,462,869 3,263,184,395 9,502,430,142 9,502,430,142 16,271,192,202 16,271,192,202 16,271,192,202 6,000,000,000 8,000,000,000 13,679,415,650 18,653,748,614 23,317,185,766 10,723,586,000 10,723,586,000 17,900,000,000 9,313,606,000 11,642,006,000 0.0000 22,221,370,000 478,020,000,000 0.0128 2,542,947,507.00 1,130,528,588.00 127,847,955.00 27,792,295.00 55,399,479.00 152,637,377.00 237,322,502.00 1,240,526,128.00 2,030,433,791.00 1,167,230,430.00 2,667,408,557.00 2,104,940,776.00 381,679,389.00 510,204,082.00 524,718,667.00 1,421,779,620.00 1,358,018,973.00 850,403,331.00 984,718,641.00 651,382,824.00 956,222,382.00 1,251,828,602.00 11.7026 11.6875 33,846,000,000 0.0136 0.0061 0.0007 0.0001 0.0003 0.0008 0.0013 0.0066 0.0109 0.0063 0.0143 0.0113 0.0020 0.0027 0.0028 0.0076 0.0073 0.0046 0.0053 0.0035 0.0051 0.0067 1,076,616,764.00 -1.9006 504,163,720,000 10.5295 181,308,208,000 444,193,935,000 538,145,000,000 762,881,000,000 1,165,461,000,000 1,667,422,000,000 1,957,258,000,000 106,611,289,000 262,805,890,000 465,210,901,000 514,409,614,000 530,073,488,000 305,080,565,000 47,836,306,100 717,999,797,000 1,019,911,536,000 1,066,762,763,000 360,903,483,000 663,547,099,000 1,331,404,000,000 371,626,044,000 1,030,440,887,000 11.2584 11.6476 11.7309 11.8825 12.0665 12.2220 12.2916 11.0278 11.4196 11.6676 11.7113 11.7243 11.4844 10.6798 11.8561 12.0086 12.0281 11.5574 11.8219 12.1243 11.5701 12.0130 1,007,475,862,000 0.0058 12.0032 94 62.76 5.23 0 SYKE SIBTC STERL 23.3 1.94 47.25 52.08 3.94 4.34 2.86 112.7 9.39 1.08 65.19 5.43 0.5 92.51 7.71 0.40 52.18 4.35 0.20 61.85 5.15 0.30 293.4 24.45 0.40 81.81 6.82 0.30 110.3 9.19 0.39 17.78 1.48 0.10 21.85 1.82 0.10 71.76 5.98 0.10 18.6 1.55 23.61 1.97 307.8 25.65 0.69 289.9 24.16 1.00 430 35.83 0.02 132.7 11.06 0.02 63.91 5.33 210.4 17.53 1.00 196.3 16.36 1.20 429.2 35.76 1.00 137.5 11.46 0.10 0 1.5175 8.6944 10.86 19.275 21.75 17.167 61.125 22.733 23.564 14.8 18.2 59.8 UNION 37.174 24.16 1791.5 553 UBA 17.53 13.633 35.76 114.6 4.07 1.14 32.8 73.5 173 9.76 70.4 0.57 0.63 0.49 0.33 0.42 0.9 0.6 0.52 0.53 0.33 1.60 1.26 2.14 5.26 8.74 1.86 2.41 3.05 0.60 4,248,827,916.00 -1.2850 1.7018 0.1200 0.0590 0.0544 0.5564 0.1095 7.6316 8.1746 49.8980 20.6667 21.8810 1.6444 3.0333 11.5000 0.0000 0.0000 0.0000 25.7063 159.7500 19.5200 176.0250 2.8500 2.1000 1.2250 1.1000 1.0769 9.0000 6.0000 5.2000 22,221,370,000 22,221,370,000 7,504,000,000 7,504,000,000 11,584,000,000 11,584,000,000 13,218,000,000 12,129,411,760 4,685,500,000 18,750,000,000 18,750,000,000 18,750,000,000 10,552,846,000 10,552,846,000 12,563,090,000 869,319,176,000 0.0228 1,145,431,443.00 1,904,568,528.00 1,729,032,258.00 1,233,652,822.00 2,133,333,333.00 1,714,396,887.00 2,788,370,520.00 909,805,825.00 766,871,166.00 2,749,266,862.00 2,040,261,153.00 7,130,301,351.00 5,798,267,033.00 2,100,851,171.00 0.0061 0.0102 0.0093 0.0066 0.0114 0.0092 0.0149 0.0049 0.0041 0.0147 0.0109 0.0382 0.0311 0.0113 8,105,219,355.00 -2.9245 5.9697 16.0313 19.1746 16.7430 0.0000 0.0000 2.3188 1.2600 107.0000 12,563,090,000 12,563,090,000 9,022,823,649 9,623,809,524 11,580,000,000 0.6098 9.4247 6.7884 11.7246 19.1000 -263.0000 0.0000 1.8600 2.0083 3.0500 6.0000 7,060,000,000 11,496,000,000 17,244,000,000 21,556,000,000 446,114,000,000 784,878,000,000 497,731,200,000 674,064,000,000 120,575,000,000 157,148,000,000 345,731,071,000 331,796,000,000 372,612,000,000 111,197,074,000 145,974,674,000 236,502,923,000 0.0434 6,377,203,046.00 351,767,004.00 398,336,487.00 323,192,855.00 13,510,000,000 13,510,000,000 115,793,630,700 402,738,163.00 702,689,487.00 482,214,765.00 1,880,977,312.00 11.0637 11.6494 11.8948 11.6970 11.8287 11.0813 11.1963 11.5387 11.5209 11.5713 11.0461 11.1643 11.3738 0.0342 0.0019 0.0021 0.0017 11.2162 259,579,523,000 845,231,000,000 619,800,000 907,074,000,000 11.4143 11.9270 8.7923 11.9576 1,106,779,000,000 0.0065 2,534,709,193.00 11.9684 164,512,661,600 1,221,518,987.00 -2.1027 11.9392 929,895,133,000 0.0136 0.0022 0.0038 0.0026 0.0101 12.0441 845,231,000 567,494,000,000 1,102,348,000,000 1,520,093,000,000 1,120,703,200,000 8.9270 11.7540 12.0423 12.1819 12.0495 95 UNITY 129.5 10.79 0.05 30 28.6 2.50 2.38 66.69 5.56 17.47 1.46 1.50 12.81 1.07 0.50 39.29 3.27 37.76 3.15 0.09 177.9 14.81 0.05 45.92 3.83 0.05 13.26 1.11 5.41 265.9 22.16 1.10 223.7 18.64 1.70 470.9 39.24 0.85 163.2 13.60 0.45 174 14.50 0.85 215.8 0 0 0.9733 2.14 WEMA 35 296.2 76.6 ZENITH 0.2052 20.145 10.965 46.165 30.222 17.059 0.8 12.3 5.85 4.97 1.01 37.5 0.68 0.25 5.73 1.16 1.54 1.91 1.89 3.45 0.73 1.06 13.4875 0.2036 0.4068 1.1187 16.0000 0.0000 0.0000 0.0000 25,868,000,000 43,505,712,779 14,501,904,000 14,501,904,000 2,397,405,005.00 1,740,288,511.00 6,093,236,975.00 2,608,256,115.00 0.0128 0.0093 0.0326 0.0140 1,092,609,178.00 -1.4455 0.0285 -0.6733 74.9600 15,952,094,000 33,287,177,238 12.6000 2.7778 10,069,943,000 0.0167 -114.6000 10,069,943,000 0.7208 11.6021 9.8624 11.3739 18.6301 13.6792 -23.2000 0.0171 0.2847 12,821,249,880 9,173,488,900 1.7364 9,265,524,300 1.1118 4.0588 1.6222 1.2471 16,744,796,686 25,117,195,029 31,396,493,786 413,966,106.00 497,077,484.00 426,727,744.00 1,846,852,575.00 2,165,275,433.00 11.5491 11.4846 11.2177 128,906,575,000 11.1103 110,981,613,000 0.0141 1,155,067,557.00 11.3080 11.0796 165,081,532,000 0.0036 10,069,943,000 11.1174 11.4096 305,221,933,000 0.0163 3,196,807,302.00 2,629,227,937.00 -3.3017 364,080,837,000 12.1561 120,109,067,000 679,942,134.00 -2.5846 203,234,002,000 0.0059 3,110,951,143.00 9,923,016,000 0.0000 131,031,671,000 256,798,086,000 3,034,561,468.00 -4.8088 1,432,632,000,000 0.0062 0.0022 0.0027 0.0023 0.0099 0.0116 11.0453 203,144,627,000 608,505,175,000 883,940,926,000 1,344,241,604,000 1,258,556,800,000 1,789,458,000,000 11.3078 11.7843 11.9464 12.1285 12.0999 12.2527 186,713,988,239.00 TMPS = Total Market Price of the Stock from Jan to Dec divided by the 12 months, then you get the MPS Dyield= Dividend Per Share divided by marker price of the stock Eyield= Earnings per share divided by market price of the stock POR= Dividend per share divided by earnings per share MKT CON= Outstanding shares divided by market price per share, then the answer is MKT CO of BK A 2006-2010 divided by all the Bks BK SIZE= Log of Total Assets 96 APPENDIX Panel Data of Model Proxies No BANKS ACC ACC ACC ACC ACC AFR AFR AFR PHB PHB PHB PHB DIAMD DIAMD DIAMD DIAMD DIAMD ECO ECO ECO ECO ECO FIDTY FIDTY FIDTY FIDTY FIDTY FIN FIN FIN FIRST FIRST FIRST FIRST FIRST FCMB FCMB FCMB FCMB FCMB Yr 3 4 5 3 5 SP 3.7575 7.2675 16.0133 6.52417 8.61 9.25417 8.14 21.8983 4.08417 4.45083 18.075 4.38833 6.62917 7.665 14.8967 6.885 7.84167 4.8675 6.28 12.8992 24.1767 5.02917 2.63583 2.76833 8.655 2.7375 3.6225 3.155 3.805 8.56833 40.9733 37.6992 35.8975 16.2933 13.755 7.65667 4.67917 13.9358 6.10333 7.72917 Dyield 0 0.02498 0.09963 0.02323 0.00702 0.086 0.02055 0.01592 0.15727 0.0249 0.05431 0.07175 0.03759 0.2382 0.12242 0.03822 0.00543 0.00993 0.02983 0.08347 0.11559 0.06932 0.01826 0.03865 0.03487 0 0.02441 0.03183 0.03761 0.00614 0.04362 0.01698 0.0748 0.03588 0.08192 0.06469 Eyield 0.01863 0.11971 0.10803 0.21612 0.08362 0.01405 0.14619 0.11234 0.03183 0.26737 0.1361 -4.5461 0.08598 0.11611 0.07384 0.06972 0.05739 0.05547 0.05414 -0.0265 0.02386 0.07208 0.09031 0.05199 0.02922 0.05521 0.33914 0.07096 0.01167 0.06565 0.04138 0.06212 0.08654 0.06034 0.04702 0.13037 0.08826 0.03441 0.05822 POR 0 0.23121 0.46099 0.27778 0.5 0.58824 0.18293 0.5 0.58824 0.18293 0.63158 0.61798 0.50909 3.41667 2.13333 0.70588 -0.375 1.25 1.15789 1.28 1.33333 0.625 0.7 0.1028 0 0.37175 0.76923 0.60538 0.07092 0.72289 0.36111 0.57377 0.4065 2.38095 1.11111 Mconc 0.08333 0.0238 0.05007 0.0474 0.05064 0.0124 0.01556 0.0139 0.10623 0.03586 0.04163 0.0873 0.02575 0.03039 0.04386 0.04024 0.045 0.09982 0.08551 0.02779 0.00569 0.06726 0.14 0.1474 0.16589 0.02015 0.19502 0.0538 0.06306 0.05614 0.00287 0.00069 0.00275 0.00291 0.00578 0.02785 0.05035 0.05796 0.05084 0.05131 BKsize 11.2419 11.5167 12.0185 11.8292 11.8615 11.14 11.272 11.5469 11.201 11.5786 12.0156 11.7467 11.3484 11.4945 11.7806 11.8135 11.7391 11.1209 11.4933 11.636 11.551 11.6573 11.0791 11.3367 11.7268 11.7026 11.6794 10.5295 11.2584 11.6476 11.7309 11.8825 12.0665 12.222 12.2916 11.0278 11.4196 11.6676 11.7113 11.7243 97 10 11 12 13 14 15 16 17 18 19 GTB GTB GTB GTB GTB INTER INTER INTER OCEAN OCEAN OCEAN OCEAN OCEAN SKYE SKYE SKYE SKYE SKYE SIBTC SIBTC SIBTC SIBTC SIBTC STERL STERL STERL STERL STERL UNION UNION UNION UNION UNION UBA UBA UBA UBA UBA UNITY UNITY UNITY UNITY UNITY WEMA WEMA 3 5 5 5 15.7208 15.6758 26.07 13.1242 17.1733 12.6133 10.8867 27.4817 9.735 9.30083 20.6358 5.23 1.94167 3.9375 4.34 9.39167 5.4325 7.70917 4.34833 5.15417 24.4525 6.8175 9.18833 1.48167 1.82083 5.98 1.55 1.9675 25.6533 24.1592 35.8342 11.0575 5.32583 17.5333 16.3575 35.7625 11.4608 10.7875 2.5 2.38333 5.5575 1.45583 1.0675 3.27417 3.14667 0.04453 0.06571 0.02877 0.0762 0.05823 0.03568 0.05971 0.02729 0.04314 0.10967 0 0 0.65899 0.115 0.0092 0.05189 0.04599 0.05821 0.01636 0.044 0.04245 0.06749 0.05492 0.01672 0 0.0269 0.04139 0.00056 0.00181 0.05703 0.07336 0.01678 0.00873 0.00463 0 1.03034 0.46838 0.0286 0.09223 0.10398 0.06636 0.09753 0.09142 0.08721 0.12676 0.06659 10.5424 15.8233 -0.5263 0.7782 0.58712 8.34032 16.9401 18.3695 1.79659 9.13328 0.13108 0.12223 0.02004 0.0484 0.04571 0.06074 0.03295 0.08696 0.34194 0.16773 0.06237 0.05215 0.05972 -0.4757 1.64106 0.10608 0.14733 0.08528 0.05235 0.00742 4.912 2.45455 0.89429 0.69376 35.1101 0.20769 0.07945 0.48276 0.6319 0.43353 0.78125 0.63694 0.40909 0.47101 0.40984 0.00409 0.00693 0 0 0.0389 0.00626 0.00512 0.00568 0.35088 0.47619 0.81633 0.90909 0.92857 1.11111 1.66667 0.19231 0 0.43125 0.79365 0.00935 -0.0038 0.53763 0.49793 0.19672 0.16667 0.625 0 1.48515 0.01334 0.36 0.00857 0.01265 0.02606 0.0271 0.0331 0.01909 0.02442 0.03235 0.02147 0.03104 0.05346 0.08099 0.02792 0.04276 0.04288 0.06126 0.04066 0.04179 0.0626 0.02256 0.03808 0.05241 0.04973 0.16007 0.14379 0.10433 0.1545 0.15545 0.0079 0.00988 0.01605 0.02328 0.06178 0.00904 0.01743 0.02395 0.03585 0.05844 0.03907 0.15111 0.12952 0.02083 0.07583 0.06812 0.07928 11.4844 10.6798 11.8561 12.0086 12.0281 11.5574 11.8219 12.1243 11.5701 12.013 12.0032 11.9392 11.9684 11.0637 11.6494 11.8948 11.697 11.8287 11.0813 11.1963 11.5387 11.5209 11.5713 11.0461 11.1643 11.3738 11.2162 11.4143 11.927 8.79225 11.9576 12.0441 8.92698 11.754 12.0423 12.1819 12.0495 12.1561 11.1174 11.308 11.5612 11.4096 11.4846 11.0796 11.2177 98 WEMA 14.8225 0.00337 0.38657 WEMA 3.82667 0.01307 0.30314 WEMA 1.105 4.89593 1.39367 20 ZENITH 22.1583 0.04964 0.0862 ZENITH 18.6375 0.09121 0.10141 ZENITH 39.2425 0.02166 0.08791 ZENITH 13.5975 0.03309 0.05369 ZENITH 14.5033 0.05861 0.07309 Source: Annual Financial Statements of banks (Various Years) Date: 06/07/13 Time: 11:15 Sample: 93 0.00873 0.0431 3.51299 0.57592 0.89947 0.24638 0.61644 0.80189 0.03377 0.05012 0.02816 0.00929 0.01233 0.02119 0.0352 0.05278 11.1103 11.0453 11.3078 11.7843 11.9464 12.1285 12.0999 12.2527 Descriptive Statistic SP DYIELD EYIELD POR MCONC BKSIZE Mean Median Maximum Minimum Std Dev Skewness Kurtosis 11.29757 7.841667 40.97333 1.067500 9.599503 1.402819 4.406538 0.112908 0.033094 4.895928 0.000000 0.518952 8.628409 79.41197 1.406051 0.086538 35.11007 -4.546145 4.945637 4.618286 27.34995 0.517030 0.420543 3.512987 -0.375000 0.655808 2.424382 10.63621 0.051349 0.040665 0.195020 0.000689 0.043299 1.431634 4.456504 11.55165 11.64757 12.29165 8.792252 0.545499 -2.596499 13.62981 Jarque-Bera Probability 38.16856 0.000000 23779.27 0.000000 2628.157 0.000000 313.6517 0.000000 39.98886 0.000000 542.3450 0.000000 Observations 93 93 93 93 93 93 99 APPENDIX Regression Result of Hypothesis One Dependent Variable: SP Method: Least Squares Included observations: 93 Variable Coefficient DYIELD -3.365192 MCONC -112.1061 BKSIZE 3.620401 C -24.38751 R-squared 0.759063 Adjusted R-squared 0.637458 S.E of regression 7.813677 Sum squared resid 5433.766 Log likelihood -321.1134 Durbin-Watson stat 1.449165 Source: E-view Results Std Error t-Statistic 1.575960 -2.135328 19.18778 -5.842579 1.520690 2.380762 17.80417 -1.369764 Mean dependent var S.D dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) Prob 0.0355 0.0000 0.0194 0.1742 11.29757 9.599502 6.991687 7.100616 16.61970 0.000000 Regression Result of Hypothesis Two Dependent Variable: SP Method: Least Squares Included observations: 93 Variable EYIELD MCONC BKSIZE C R-squared Adjusted R-squared S.E of regression Sum squared resid Log likelihood Durbin-Watson stat Source: E-view Results Coefficient -0.331065 -108.4813 3.842394 -27.05250 0.734310 0.673245 7.836515 5465.576 -321.3849 1.147148 Std Error t-Statistic 0.165221 -2.003771 19.18598 -5.654195 1.522954 2.522988 17.81388 -1.518619 Mean dependent var S.D dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) Prob 0.0481 0.0000 0.0134 0.1324 11.29757 9.599502 6.997524 7.106453 16.35031 0.000000 100 Regression Result of Hypothesis Three Dependent Variable: SP Method: Least Squares Included observations: 93 Variable POR MCONC BKSIZE C R-squared Adjusted R-squared S.E of regression Sum squared resid Log likelihood Durbin-Watson stat Source: E-view Results Coefficient -1.411019 -107.7532 3.841548 -26.82391 0.823545 0.713051 7.956296 5633.935 -322.7956 1.183245 Std Error t-Statistic 1.269427 -1.111540 19.50537 -5.524283 1.546538 2.483966 18.08687 -1.483060 Mean dependent var S.D dependent var Akaike info criterion Schwarz criterion F-statistic Prob(F-statistic) Prob 0.2693 0.0000 0.0149 0.1416 11.29757 9.599502 7.027863 7.136792 14.97518 0.000000 101 ... impact of dividend yield on stock prices of Nigerian banks To determine the impact of earnings yield on stock prices of Nigerian banks To determine the impact of dividend payout ratio on stock prices. .. of this study is the stock prices The study focuses on the impact of dividend policy and earnings on the stock prices of Nigeria Banks Therefore, this study adopts the choice of the ex-post facto... banks; the impact of earnings yield on stock prices of Nigeria banks and the impact of payout ratio on stock prices of Nigeria banks The study adopted the ex-post-facto research design and panel