Dividend and Share Price Behaviour: A Panacea for Sustainable Industrialization

N. M. Moseri (), S. I. Owualah, P. I. Ogbebor, I. R. Akintoye and H. T. Williams ()
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N. M. Moseri: Babcock University
S. I. Owualah: Babcock University
P. I. Ogbebor: Babcock University
I. R. Akintoye: Babcock University
H. T. Williams: Babcock University

A chapter in Sustainable Education and Development – Sustainable Industrialization and Innovation, 2023, pp 986-992 from Springer

Abstract: Abstract Purpose: We tested agency theory on capital market sustainability and we focused on the extent to which risk-averse investors have used financial resources such as dividend payment and share price to drive sustainable industrialisation and innovation by re-investing dividends received. Design/Methodology/Approach: A diagnostic research design and probability sampling were used. 250 observations were collected on panel data from 50 quoted firms for five years (2017–2021). A quantitative research method called the Cobb-Douglas production model was used to analyse dividend payment, share price and sustainable industrialization and innovation. Findings: The results show investors could use a potential capital market with the available financial resources such as dividends and share price to drive sustainable industrialization and innovation through the reinvestment of dividends. Research Limitation/Implications: The limitation is pinpointed on the assumption that the share price goes up and down. A decline in share prices affects sustainable industrialization and innovation in the capital market. Practical Implication: The financial variables used in this study would inform stakeholders and policy holders that meeting the goals for sustainable development, and financial resources are vital. Social Implication: The macroeconomic variables used in the study implied that financial resources have a linear and long-run relationship with sustainable industrialization and innovation in the capital market. Originality/Value: The novelty of this study lies in the financial instruments used as proxies, it informed policy makers that achieving sustainable industrialization and innovation required financial resources.

Keywords: Agency theory; Dividend; Financial resources; Share price; Innovation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-25998-2_76

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DOI: 10.1007/978-3-031-25998-2_76

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