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Behavioral Biases and Unclaimed Dividends: Evidence from the Nigerian Capital Market

Author

Listed:
  • Abdul Adamu

    (Department of Business Administration, Nasarawa State University Keffi, Nasarawa State, Nigeria)

  • Zainab Abdul Husseini

    (Department of Banking & Finance, Nasarawa State University Keffi, Nasarawa State, Nigeria)

  • Yusuf Alhaji Usman

    (Department of Sociology, Nasarawa State University Keffi, Nasarawa State, Nigeria)

Abstract

This study investigates the impact of behavioral biases on unclaimed dividends in the Nigerian capital market. Using a quantitative research design with a survey of 412 Nigerian investors and employing Partial Least Squares Structural Equation Modeling (PLS-SEM), the research examined five specific behavioral factors: overconfidence bias, herding behavior, loss aversion, investor apathy, and procrastination. The findings revealed that all five behavioral biases significantly contribute to unclaimed dividends, with investor apathy (β = 0.234, p < 0.001) emerging as the strongest predictor, followed by procrastination (β = 0.198, p < 0.001) and overconfidence bias (β = 0.187, p < 0.001). The model explained 67.3% of the variance in unclaimed dividend behavior. The study recommended implementing behavioral-focused regulatory interventions that address psychological factors rather than purely technical solutions.

Suggested Citation

  • Abdul Adamu & Zainab Abdul Husseini & Yusuf Alhaji Usman, 2025. "Behavioral Biases and Unclaimed Dividends: Evidence from the Nigerian Capital Market," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 1319-1331, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:1319-1331
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    References listed on IDEAS

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