Information Content of Dividend Announcement: Analysis of the Oil and Gas Sector in Nigeria Using Event Studies and Back Testing

The objective of this article on information content of dividend announcement and stock price movement, using data drawn from oil and gas sector is to establish if there is any relationship between dividend announcement and stock price movement in the oil and gas sector in support/or not of signaling hypothesis in Nigeria. Using Event studies and back testing methodology. The research period is from 2009-2013.Result have confirmed that dividend change has a statistically significant value to investors. A dividend increase and dividend decrease resulted with a statistically stock price change in the same direction, but dividend retention resulted with no statistically significant stock price change.