The Effect of Dividend Policy on Share Price Volatility of Some Selected Companies on the Nigerian Exchange

Share Price volatility has exhibited different patterns in different global exchange markets including the Nigerian exchange. Various attempts have been made to unravel the possible causes of this volatility and how they can be mitigated, but there have been fewer studies in this regard, especially in developing economies like Nigeria. Hence the study examined the effect of dividend policy on share price volatility of selected companies listed on the Nigerian Exchange. The study adopted ex-post facto research design and EGARCH for volatility measure. A sample of 49 companies out of 162 companies listed on the Nigerian Exchange during the study period (2010-2020) was randomly selected for the panel data. The study found that the dividend policy had significant relationship with share price volatility (SPV) with Adjusted R2 = 0.116, Wald (3, 2156) = 32.89, p = 0.000 < 0.05; Specifically, Dividend Payout Ratio (DPR) has significant effect on SPV (DPR = 0.0036, t(2156) = 4.7237, p < 0.05); dividend yield (DY), dividend per share (DPS) and financial leverage (LEV) had a negative and no significant effect on SPV (DY = -0.0003, t(2156) = -2.713, p > 0.05; DPS = -0.0508, t-test = -1.8952, p > 0.05; and LEV = -0.2066, t-test = -1.4742, p > 0.05 respectively). The study concluded that dividend policy have significant effect on share price volatility. The study recommended that companies should focus more on the payout while investors should go for corporate entities with constant payout ratio

Nexus Between Tax Havens and Illicit Financial Flow of Funds(IFFs) from Africa: A Theoretical Review

This paper examined the nexus between tax havens and illicit financial flow of funds with particular reference to capital flows out of the African continent. Qualitative content analysis method supported with empirical data obtained from multilateral agencies was used for the study. The dataset covered forty-four (44) African countries for the period 2005-2014 respectively. Results revealed that the absence of political will, weak institutional framework, poor regulatory oversight and the unbridled scramble for the continent’s mineral resources are some of the key factors responsible for the continued rise in IFFs from Africa. The study also found that the absence of global consensus on the proper treatment of tax havens remains a challenge to fostering the needed international collaboration to fight the scourge. It therefore recommended that critical stakeholders like the press and civil society groups in their roles as public watchdogs need to do more to track and report incidences of IFFs timeously. Also, on the international front, efforts must be made to ensure that the proposed new minimum, global corporate tax rate of 15% is adhered to as a needed first step to discourage funds flow to tax havens. Keywords: Tax Havens, Illicit financial flow of funds, Tax Evasion, Africa, Economic Development JEL Classification: B22, E63, H26 DOI: 10.7176/RJFA/13-2-06 Publication date: January 31st 202