EFFECTS OF WASTEFUL ORGANIZATIONAL PRACTICES ON THE SURVIVAL OF GOVERNMENT FIRMS IN NIGERIA

ABSTRACT

The purpose of this study is to determine the effect of e- dividend payment on banking industry equity holders in Enugu state  (a  study  of  Fin  Bank  Plc  and  UBA  Plc).  Data  were collected from both primary and secondary sources. The major data collection instrument is the questionnaire. The data were presented in tables as frequency distribution. In the analysis, the  techniques of  percentage and  frequency were  used.  In testing the hypothesis, the Z test was applied. The following are the major finding of the study:

(I) that e-dividend payment in the bank has helped in speeding up services to equity holders in the banking industry. From the findings it is clear that computer in Nigeria banks has enhanced prompt calculation and payment of e-dividend to equity holders. (II) That e-dividend payment in Nigeria banks has generally reduced the stress and problems encountered by equity holders in Nigeria banking industry.

(III) From the findings it is clear that Government should provide necessary infrastructural facilities (e.g. electricity supply situation should be improved) necessary for the support of the industry and ensure healthy competition in the banking system. The researcher recommended Improvement in service delivery by  the  telecommunication  industry  in  the  country  from  its current epileptic condition.

(IV) Internal Business Environment should be made favourable to the adoption and payment of e-dividend system, that is, the top management should be supportive and receptive to new idea: business facilities should be able to support the innovation or bank should update and equip them with necessary trainings and facilities to enable them handle the challenge.

CHAPTER ONE INTRODUCTION

1.1    BACKGROUND OF THE STUDY

The electronic method of payment or e-payment (e- commerce) has taken a centre stage in economic activities of countries of the world. In its bid to catch up with this trend in the world, Nigeria has adopted e-commerce.

Investment in recent time, in the Nigeria capital market and in the banking industry appears to be taking its shape, especially when considered along the new lease of life. The Securities and Exchange Commission (SEC) seems to be injecting into the operation of the market and even the recapitalization exercise that was carried out in the banking industry.

The market before now was regarded as a place where only the elites in the society call the shot, but it is now being used as a variable factor in measuring the growth and development of nation around the globe. (www.business.com  2008)

Operation I the Nigerian Capital market have witnessed a lot of transformation, both in human and infrastructural development. The Nigerian Stock Exchange (NSE) being a self regulatory organization, in a space of time has eroded the elite cliché  associated  with  the  market  and  made  it  all  corners affairs. Notwithstanding the Nigeria Stock Exchange goals and objectives  of  ensuring  that  every  Nigerian  has  bile  of  the

goodies in terms of returns on investment that flow from having a stake in the market, some structured guidelines in the affairs of  the  market  as  it  relates  to  investors  appears  as  if  the investors were being done a favour for approaching the market for investment.    With     the     recent     security     exchange commission directives that all registrars of Companies in the country should no longer hold brief for their parent company or any organization, they have close affinity with and coupled with the E-dividend option recently launched, investor’s prayer of a virile and transparent market operations may have finally come to be. (Best stock news.   www.wordpress.com). It will be recalling that as at September 2007, though with the alleged connivance of registrars, a sum of   N19billion unclaimed dividend was still variously being held in the coffers of both quoted and unquoted companies and that the money was being ploughed back into the owner’s account as profit.

(www.business.com  2007), attempts has been made in the pat by SEC to float a trust fund to help manage the huge

unclaimed dividend but this was vehemently oppoed by the investors in the market.

The Security and Exchange Commission’s decision to launch the e-dividend at this time in the history of the country is a move towards attaining its vision of being among the 20 most developed economics in the world by 2020 and it serves a positive tonic to both local and international investors to now have a rethink on the workability of corporate governance policy in the country. (See e-dividend – option news of 17/03/2005).

E-dividend  as  an  option  is  a  means  where  by  an investor’s account is credited electronically whenever a transaction is carried out for him/her in the market. E-payment system is applicable to the banking industry which means paying directly into the account of the beneficiary. Other advantages as it is obtained in other jurisdiction where e- dividend option and e-payment system have been adopted are that it will enhance the capital market liquidity; shareholders will have their money to reinvest on time; payment is being affected

immediately; it reduces delay; enhances good cooperate governance; eradicates the era of quoted companies declaring dividend when in the actual fact they do not have cash on ground to pay.

According to the ministry of finance, on his open speech says ‘with the introduction of the e-dividend, the commission has further shown serious commitment in removing some constraints in  dividend  payment  in  the  areas  of  eliminating unclaimed dividend. Warrants delay in depositing dividend warrants into current or saving account, dividend warrants lost due to change of address, incomplete address, poor and inefficient dispatch procedures and delay in receipt of dividend warrants.

1.2    STATEMENT OF THE PROBLEM

Dividend which is the main stay of the Nigerian investors on investment, prior to the discovery of Nigeria Stock Exchange has been in jeopardy (www.business.com 2007).

Despite the concerted efforts   by   successive   Nigerian government that is Nigeria Stock Exchange (NSE) and Security and Exchange Commission (SEC), the situation has not changed much. Dividend continues to contribute les than what it is expected of it in lifting dividend policies from its deplorable is yet to yield the desired results.

Below are some of the problems that justify the researcher in embarking on the impact of e-dividend payment to equity holders of the Nigeria banking industry

     The issue of unclaimed dividend is ramped.

         The issue of unclaimed dividend is also the main stay back on investors.

         An  average  Nigeria  investor  has  small  holding  and various needs and problems

         There is also the issue of clearance on the declaration of the said dividend.

         Operations of the Nigeria Stock Exchange are confined to         well  known  locations,  persons,  companies  and

therefore do not extend to wide geographical areas, all these have resulted in problems to this sector

1.3    OBJECTIVES OF THE STUDY

The study seeks to achieve the following set objectives.

1) To evaluate the impact of E-dividend payment system to investors or equity holders.

2) To identify constraints that militates against efficient and effective declaration of dividend

3) To suggest possible ways of enhancing the effective and efficient ways of enforcing good dividend policies.

1.4    RESEARCH QUESTIONS

The study seeks to answer the following questions.

1) What are the  expected impacts of  electronic dividend payment to equity holders?

2) What  are  the  problems  associated  with  e-dividend payment?

3) What is the importance of electronic dividend payment to equity holders in banking industry?

1.5   SCOPE OF THE STUDY

This study is geared towards evaluating the impact of e- dividend payment to equity holders of Nigeria banking industry; it is also within the scope of the study to investigate the roles of NSE and Sec in the development of e-dividend payment. It will also  examine  the  policies  on  the  e-dividend and  also  view whether it meets the prescribed minimum or not.

1.6    HYPOTHESES OF THE STUDY

(I)     The impact of E-dividend to the equity holder is not encouraging.

(II)    E-dividend payment does not reduce the issue of unclaimed dividends.

(III) E-dividend payment does not enhance the effectiveness and efficiency of dividend payment to equity shareholders.

1.7    SIGNIFICANCE OF THE STUDY

Research as the process of arriving at dependable solution to problems through the planned and systematic collection, analysis and interpretation of data, this would enable the researcher to fish out the unknown as regards to the issue of the impact of e-dividend payment to equity holders of Nigeria banking industry, and in so doing more would be known about this particular issue.

It also serves as a source of information especially to research students who may wish to undergo more research on the said topic. Through this study, the researcher would be able to arrive at dependable solution and conclusion to this problem and make recommendation of meaningful contribution towards

the equity holders, Nigeria Stock Exchange (NSE), Security and Exchange Commission (SEC), Banks and even to the general public.

1.8    OPERATIONAL DEFINITION OF TERMS

Bank: – Banks are financial institutions responsible for mobbing out excess fund

and giving it out to customers

Capital Market: – This is a market that deals on long-term financing.

Equity Holders: – These are the owners of a company’s shares

or properties.

E–Dividend: – This is a means where an investor’s account is credited electronically whenever a transaction is carried out for him/her in the market

Unclaimed Dividend: – This is part of the dividend that has not been declared or claimed

Registrar: – This is a person who provides the an enabling electronics platform to ensure that all shareholders are able to update their bank account detail from time to time.

NSE (Nigerian Stock Exchange): – This is the Nigerian trading floor for stock.

SEC (Security and Exchange Commission): –  This is  the body that regulates the activities of the market and ensure fair dealing in securities and protection of investors.

₦5,000.00 – DOWNLOAD FULL PROJECT DOWNLOAD FULL PROJECT Added to cart

---

---

---

---

Related Project Topics :