The Impact of Dividend Policy on Share Price Volatility in the Indian Stock Market PDF Download

Author: Biswajit Kumar
Publisher:
ISBN:
Category :
Languages : en
Pages : 8

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Book Description
The Impact of dividend decision on the share price volatility in the Indian Stock Market is the subject matter of this study. Using the correlation analysis and the least square multiple regression methods, the study found only 32% of the changes in the share prices are explained by Dividend Yield, Dividend Payout Ratio, Investment growth, Size of the Firm, Leverage, and Earnings Volatility.

Author: David E. Allen
Publisher:
ISBN: 9781863422581
Category : Dividends
Languages : en
Pages : 36

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Book Description

Author: Deepa Gunaratne
Publisher:
ISBN:
Category :
Languages : en
Pages : 15

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Book Description
The impact resulted from the dividend policy of a firm, on the volatility of the market value of stocks, is the major concern of this study, which is an issue bearing an utmost significance, when considering the objectives of a corporate. The focus of an entity should be aligned, on the maximization of stock holders' wealth and this necessitates the selection of an optimum dividend policy. The present study, thus, attempts to shed a light on the above fact, within the Sri Lankan context. Data was collected from a sample of companies listed under the manufacturing sector of the Colombo Stock Exchange from year 2006 to 2014. The study occupied panel data regression model for analysis. The outcome revealed that, the dividend yield of the current year has a negative impact on the share price volatility, while the dividend payout ratio of both the current and previous years has a positive impact. In addition, the impact of dividend yield is negative on the market value of the firm, where the dividend payout ratio of the current year is also depicts the same impact. The findings of the study reassure the findings of the previous researchers within the Sri Lankan context, in case of the market value of the firm, while being contrary in case of the share price volatility. Accordingly, the firms' ability of utilizing the dividend policy as a mechanism of controlling the volatility of share prices is established. However, it will not be effective in altering the market value of the firm.

Author: Nkobe Kenyoru
Publisher: LAP Lambert Academic Publishing
ISBN: 9783659505607
Category :
Languages : en
Pages : 84

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Book Description
The Book (Dividend Policy and Share Price Volatility) is a thesis that went through examination processes and found to be original. The thesis is about dividend policy decisions that management make and how they influence a company's shareholders' decisions with regard to trading their shares at a securities exchange. The study was based on the companies that are listed in the Nairobi Securities Exchange (NSE). The Data used was extracted from the Financial Statements of these companies and share price data from the NSE. It was then transformed into a suitable form to serve the purpose of the study. Multiple Regression and Correlation Analysis techniques were used to analyse the data and the results showed that the relevant factor for the NSE companies was Dividend Payout Ratio as opposed to Dividend Yield for mature markets. However the study made several recommendations, both for policies and further research. The book is helpful for those interested dividend policies and price volatility

Author: Prof. Dr. Radhe Shyam Pradhan
Publisher:
ISBN:
Category :
Languages : en
Pages : 17

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Book Description
This study examines the impact of dividend policy on share price volatility of Nepalese commercial banks. The share price volatility, change in market price per share and stock return change are dependent variables. Dividend yield, dividend payout, debt ratio, size, growth and earning volatility are independent variables. The study is based on 18 commercial banks of Nepal from 2009-2014, leading to a total of 108 observations. The data are collected from various issues of Banking and Financial Statistics and Bank Supervision Report published by Nepal Rastra Bank, annual Report of Nepal Stock Exchange and the annual reports of the selected banks. The regression models are estimated to test the significance and impact of dividend policy on share price volatility of Nepalese commercial banks.The study reveals that dividend payout is negatively related to share price volatility (price volatility, change in MPS and stock return volatility). It indicates that increase in dividend payout leads to decrease in share price volatility. However, earning volatility is positively related to share price volatility indicating that higher the earning volatility, higher would be share price volatility. The regression result shows that dividend yield and size have significant positive impact on share price volatility. The beta coefficients for growth and dividend yield are significant at 5 percent level of significance.

Author: Kashan Pirzada
Publisher:
ISBN:
Category :
Languages : en
Pages : 15

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Book Description
Objectives - This research seeks to identify the relationship between dividend policy and share price volatility.Methodology/Technique - This study uses both regression and correlation analysis, with price volatility, dividend yield, and dividend pay-out ratio as control factors. The study focuses on Malaysian companies for the period between 2001 and 2009.Findings - This research identifies that there is a positive, but not significant, relationship between share price volatility and dividend yield.Novelty - An important implication of this research is that the share price reaction to the earnings announcement is not similar to that of other developed countries. Therefore, the managers may not employ the dividend policy to influence their stock's risk. The influence of stock price risk through dividends may also be ambiguous due to the inefficient capital market in the financial sector.Type of Paper: Empirical.

Author: Luis Correia da Silva
Publisher: OUP Oxford
ISBN: 0191531812
Category : Business & Economics
Languages : en
Pages : 204

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Book Description
Dividends are not only a signal about a firm's prospects under asymmetric information, but they can also act as a corporate governance device to align the management's interests with those of the shareholders. Dividend Policy and Corporate Governance is the first comprehensive volume on the relationship between dividend policy and corporate governance, and examines in detail empirical studies and current theories. Reviewing the interactions between dividend policy and other corporate governance mechanisms, it compares results for the UK and the US with those for other countries such as France, Germany, and Japan, and provides new empirical evidence on corporate governance in continental Europe and its impact on dividends. Focusing on one of the main representatives of this system, Germany, it highlights major differences between the dividend policies of German firms and those of UK or US firms. Conventional wisdom states that German dividends are lower than UK or US dividends, yet on a published-profits basis the exact converse is true. In addition, the authors demonstrate a link between corporate control structures and dividend payouts, report evidence that the existence of a loss is an additional determinant of dividend changes, and demonstrate that the tax status of the controlling shareholder and the firm's dividend payout are not linked. The conclusions reached in this book have important implications for the current debate on corporate governance, making it invaluable for academics, finance professionals, regulators, and legal advisors.

Author:
Publisher:
ISBN: 9781846632563
Category : Corporations
Languages : en
Pages : 83

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Book Description
Dividend policy continues to be among the premier unsolved puzzles in finance. A number of theories have been advanced to explain dividend policy. This e-book briefly reviews the principal theories of payout policy and dividend policy and summarizes the empirical evidence on these theories. Empirical evidence is equivocal and the search for new explanation for dividends continues.

Author: Ahmed Imran Hunjra
Publisher:
ISBN:
Category :
Languages : en
Pages : 7

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Book Description
Purpose: The volatility in stock prices is one of the most discussed topics in finance. Many studies have been conducted to find the factors which cause fluctuation in stock prices and different results have been found. In this study an attempt has been made to see the affect of dividend yield, dividend payout ratio, return on equity, earning per share and profit after tax on stock prices in Pakistan. For this purpose four non financial sectors (Sugar, Chemical, Food and personal care, Energy) have been selected. A sample of 63 companies listed at Karachi stock exchange was analyzed for the period of 2006-2011. Methodology: Ordinary least square regression model has been applied on panel data. Findings: The results indicate dividend yield and dividend payout ratio which are both measures of dividend policy have significant impact on stock price. Dividend yield is negatively related with stock price and dividend payout ratio is positively related with stock price which means that these results are against dividend irrelevance theory. For other independent variables profit after tax and earnings per share have significant positive impact on stock price and return on equity which shows positive insignificant impact on stock price. Recommendations: This paper shows new insights for policy makers to improve the performance of Karachi stock exchange.

Author: Nicholas Tsounis
Publisher: Springer
ISBN: 3319484540
Category : Business & Economics
Languages : en
Pages : 869

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Book Description
This proceedings volume aims to provide new research methods, theories and applications from various areas of applied economic research. Featuring papers from the 2016 International Conference on Applied Economics (ICOAE) organized by the University of Nicosia and the Western Macedonia University of Applied Sciences, this volume presents cutting edge research from all areas of economic science that use applied econometrics as the method of analysis. It also features country specific studies with specific economic policy analyses and proposals. Applied economics is a rapidly growing field of economics that combines economic theory with econometrics to analyse economic problems of the real world usually with economic policy interest. ICOAE is an annual conference started in 2008 with the aim to bring together economists from different fields of applied economic research in order to share methods and ideas. The goal of the conference and the enclosed papers is to allow for an exchange of experiences with different applied econometric methods and to promote joint initiatives among well-established fields likemacro- and microeconomics, international economics, finance, agricultural economics, health economics, education economics, international trade theory and management and marketing strategies. Featuring global contributions, this book will be of interest to researchers, academics, professionals and policy makers in the field of applied economics and econometrics.