The Impact of Dividend Payment on Share Price of Some Selected Listed Companies on the Ghana Stock Exchange
Edward Attah-Botchwey

Abstract
The paper tries to resolve the problems faced by companies listed on the Ghana Stock Exchangeby analysing their dividend payment and evaluate its effect on the share price of these companies. Management is usually caught up in dilemma on whether to pay large or small percentage of their earnings as dividends or to retain them for future investments. This has come out as a result of the need for management to satisfy the various needs of shareholders. The paper seeks to find out the impact of dividend payment and its relationship on the share price of some listed companies on the Ghana Stock Exchange (GSE) and how it helps shareholders to make an informed decision on whether to maintain or withdraw their investment and reinvest in other companies. For the purpose of the study, Eco bank, Cal Bank and AngloGold Ashanti were randomly selected out of the 36 companies listed on the Ghana Stock Exchange. About sixty (60) respondents (shareholders) were randomly selected out of the total number of shareholders of the companies mentioned above. The primary source of data was questionnaire whilst the secondary data consisted of information on dividend policy from the internet, journals such as the journal of risk finance, national tax journal, journal of finance and corporate finance. It was found out that as the dividend of companies increase, the share price also rises due to the pressure on the share. This suggest firms with higher dividend payment have their share price going up as well as a result of higher demand of shares and firms with lower dividend have their share price going down all else being equal.

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