An empirical investigation of the information content of dividend payment on share prices of publicly quoted companies

Abstract

This study sought to investigate whether or not there is a relationship between dividend and share prices. The major source of data was financial records of publicly quoted companies. Data from the various companies was gathered and analysed using correlation analysis, Chisquare distribution and F-distribution. The results obtained are discussed in this report. It was found that dividend and share prices are highly correlated. Further, the results showed that the correlation is even higher when the change in dividend is negative.