Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between unclaimed dividends management and customer retention has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of the Nigerian Capital Market where operating conditions differ markedly from more developed markets.

Within the context of the Nigerian Capital Market, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of unclaimed dividends management on customer retention, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on unclaimed dividends management, there remains limited consensus on the precise nature of its relationship with customer retention, particularly within the Nigerian Capital Market. Many organizations continue to make decisions about unclaimed dividends management without a clear, evidence-based understanding of how those decisions ultimately affect customer retention. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Unclaimed Dividends Management on customer retention in the Nigerian Capital Market.
2. To assess the extent to which unclaimed dividends management influences customer retention within the study area.
3. To identify the challenges associated with unclaimed dividends management in relation to customer retention.
4. To recommend strategies for optimizing unclaimed dividends management in order to improve customer retention.

1.4 Research Questions

1. What is the effect of unclaimed dividends management on customer retention in the Nigerian Capital Market?
2. To what extent does unclaimed dividends management influence customer retention within the study area?
3. What challenges are associated with unclaimed dividends management in relation to customer retention?
4. What strategies can be adopted to optimize unclaimed dividends management in order to improve customer retention?

1.5 Significance of the Study

Beyond its academic contribution to the field of finance / banking, this study has practical value for management teams within the Nigerian Capital Market seeking to understand how unclaimed dividends management translates into measurable outcomes around customer retention. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

The study is limited to an examination of Unclaimed Dividends Management and its relationship with customer retention within the context of the Nigerian Capital Market. It reflects a clearly defined scope of analysis and relies on data and perspectives available within that scope; generalizing the findings beyond this specific context should therefore be done with appropriate caution.