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

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.