Moderating effect of institutional ownership on the relationship between dividend policy and share price of listed deposit money deposit money banks in Nigeria
DOI:
https://doi.org/10.33003/fujafr-2026.v4i3.409.203-212Keywords:
cash dividend, dividend declared, dividend policy, institutional ownership, price earnings ratio, retention ratio, share priceAbstract
Purpose: The study examined the moderating effect of institutional ownership on the relationship between dividend policy and share price of listed deposit money deposit money banks in Nigeria.
Methodology: The study employed correlational research design and a sample of eleven (11) listed deposit money banks drawn from a population of fifteen (15) listed deposit money deposit money banks using a purposive sampling technique over a period of 10 years (2015-2024). Data was obtained from financial statements and was analyzed using Panel Corrected Standard Error (PCSE).
Results and conclusion: The findings show that institutional ownership has no significant moderating effect between retention ratio and share price, while institutional ownership has a significant moderating effect between price earnings ratio and share price, cash dividend and share price, and dividend declared and share price.
Implication of findings: The study recommends that institutional investors in banks should be actively engaged through corporate disclosures and investor relations programs to increase confidence in banks’ reinvestment strategies. Management should also avoid excessive accumulation of retained earnings that may create investor suspicion about inefficient use of funds and lower the share price of the bank.
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