scholarly journals The influence of dividend policy on the volatility of shares in the Romanian equity capital market

2018 ◽  
Vol 184 ◽  
pp. 04008
Author(s):  
Ciprian Cristea ◽  
Maria Cristea
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Price Volatility ◽  
Equity Capital ◽  
Share Price ◽  
Cross Sectional ◽  
Negative Effect ◽  
The Relationship

Dividend policy is one of the most debated topics in corporate finance and, at the same time, it represents an important issue from the perspective of both the managers of the firm and the investors. To the best of our knowledge, the literature regarding establishing the relationship between dividend policy and share price volatility of non-financial companies listed on Romanian stock market remains inexistent. This study attempts to identify how the share price volatility of non-financial companies listed on the Bucharest Stock Exchange for a period of sixteen years from 2002 and 2017 is influenced by corporate dividend policy. Results from a cross sectional multiple regression analysis revealed a negative effect of the two components of the dividend policy on the share price volatility. The results support the idea that the lower the dividend yield, the higher the risk to be faced by the shareholder. Growth in assets and share price were negatively related. Positive relationship between firm size and debt ratio to price volatility were identified. However, there was no significant relationship found between earning volatility and price volatility in the Romanian stock market.

Effect of Audit Expectation Gap in Nigerian Capital Market

2014 ◽  
Vol 1 (1) ◽  
pp. 294 ◽  
Author(s):  
Paul N. Onulaka
Keyword(s):  
Capital Market ◽  
Negative Impact ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Cross Sectional Survey ◽  
Chi Square ◽  
Cross Sectional ◽  
The Public ◽  
Expectation Gap ◽  
The Relationship

Audit expectation gap is a phenomenon that presently attracts the attention of researchers all over the world. The basic problem is in the area of how the public perceives the role of the auditor, which in most cases centers on the prevention of fraud and irregularities. On the other hand the auditor and the auditing profession always exonerate themselves from the fact and perception of the public towards their work. However, the continued litigation against the auditor and the auditing profession has called on a rethink on the relationship of the auditor and the audit work he performs This paper is structured to briefly establish what auditing and its expectations gap is and the relationship audited financial statement has on capital market and to investigate if the identified gaps have any significant effect in the volume of transactions in the Nigerian capital market.It sought to establish the perception of the capital market operators on its existence. Respondents view was also sought on how the gap could be narrowed. Chi-square (χ2) was used to analyze the data obtained from the study. The data were obtained through questionnaire. Two hundred and ninety (290) copies of the instrument were found useful out of 350 copies distributed using purposive sampling technique. In this study, a cross-sectional survey was conducted in Lagos and Abuja stock Exchange to capture the perceptions of key users of financial statements in Nigerian capital market. The tests of hypothesis were done using Microsoft Excel 2010 version. Tests were carried out at a significant level of 5% and twelve degree of freedom. The findings of the study indicated that there is a wide expectation gap in the areas of auditors’ responsibility for fraud prevention and detection. Audit expectation gap has negative impact on the volume of transactions in Nigerian stock exchange.

Effect of Dividend Policy on Stock Price Volatility in Nigeria Stock Exchange

2019 ◽  
Vol 9 (2) ◽  
pp. 219
Author(s):  
Felix Ebun Araoye ◽  
Akinola Michael Aruwaji ◽  
Emmanuel OlusuyiAjayi
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Price Volatility ◽  
Share Price ◽  
Dividend Payout ◽  
Share Prices ◽  
Duration Effect

This paper seeks to determine the effect of dividend policy and dividend payment on share price volatility in Nigeria. Several literatures have showed evidence that dividend policy vary inversely proportional with share price volatility with duration effect. The study used data from the actively trading companies listed in the Nigeria Securities Exchange for a period of ten (10) years from 2005–2014. The estimation is based on panel data analysis between dividend policy measures (dividend payout, dividend per share, earnings after tax, dividend declared and number of share) and Share price volatility. The findings from the random effects regression results showed dividend per share is the major determinants of share price volatility in NSE (β = 0.6870, ρ<0.05). Dividend payout ratio negatively affect share price volatility (β =0.612, ρ>0.05) and earnings after tax negatively affect share price volatility (β =0.038, ρ>0.05).Thus, the higher the payout ratio the less the share price volatility, and the higher the earnings after tax lower the share price volatility. In conclusion, dividend per share has positive effect and inclusive relationship with market share prices. It is recommended that firms should try and improve on their financial performance that will enable consistent increase in the dividend per share for positive impact on market value.

scholarly journals Information asymmetry, government ownership, and dividends from the building construction from Indonesia

2020 ◽  
Vol 10 (6) ◽  
pp. 3-8
Author(s):  
Musdalifah Azis ◽  
Siti Amalia ◽  
Dio Caisar Darma
Keyword(s):  
Information Asymmetry ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Total Sample ◽  
Government Ownership ◽  
Panel Data Regression ◽  
Data Regression ◽  
Policy Information ◽  
Negative Effect ◽  
The Relationship

This study investigated to examine the relationship between information asymmetry and government ownership to dividend policy. Information asymmetry is measured using bid-ask spreads, while government ownership is measured using the number of government shares divided by the number of outstanding shares multiplied by 100 %. This study uses purposive sampling with a total sample of 9 sub-companies construction and building listed on the Indonesia Stock Exchange (ISE) in 2016-2019. The data used is quantitative data and data sources were taken from the company's annual financial statements. Descriptive statistics and panel data regression are used as data analysis tools. The results showed that information asymmetry has a positive and significant effect on dividend policy, government ownership does not have a significant negative effect on dividend policy, and the interaction of information asymmetry and government ownership moderates the dividend policy.

scholarly journals The Effect of Profitability, Liquidity, and Capital Structure on Firm Value with Dividend Policy as a Moderating Variable in the Company Mining Listed on the Indonesia Stock Exchange

2021 ◽  
Vol 8 (12) ◽  
pp. 328-337
Author(s):  
Emelia Febrinawaty Cordiaz ◽  
Erlina . ◽  
Chandra Situmeang
Keyword(s):  
Capital Structure ◽  
Firm Value ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Analytical Technique ◽  
Independent Variables ◽  
Mining Companies ◽  
Policy Variable ◽  
Negative Effect ◽  
The Relationship

The purpose of this study is to examine and analyze the effect of profitability, liquidity, and capital structure on firm value in mining companies listed on the Indonesia Stock Exchange and to test whether dividend policy can moderate the relationship between the independent variables and the dependent variable. The population of this study is all mining companies listed on the Indonesia Stock Exchange from 2011 to 2019. The research sample was determined by the purposive sampling method, so a sample of 11 companies was multiplied by 9 years of research to obtain 99 observations. The analytical technique used in this study is moderating regression analysis (MRA) with Eviews 10 software tools. This study partially shows that profitability has a positive effect on firm value, liquidity has a negative effect on firm value, and capital structure has a negative effect on firm value. All of these independent variables together affect firm value. The dividend policy variable moderates the relationship between profitability and firm value but does not moderate the relationship between liquidity and capital structure on firm value. Keywords: profitability, liquidity, capital structure, dividend policy, firm value.

scholarly journals Impact of Accounting Information on Share Price: Empirical Evidence from Pakistan Stock Exchange

2016 ◽  
Vol 3 (1) ◽  
pp. 124
Author(s):  
Muhammad Asif ◽  
Kashif Arif ◽  
Waqar Akbar
Keyword(s):  
Capital Market ◽  
Stock Prices ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Accounting Information ◽  
Time Frame ◽  
Share Price ◽  
Share Prices ◽  
The Impact ◽  
The Relationship

Purpose—The purpose of this paper is to examine the relationship between accounting information and share price. In order to achieve this, a model that includes specific accounting ratios (earning per share, book value per share, capital employed per share and operating cash flow per share) and shares a price is developed. Design/methodology/approach—The data were collected from the companies listed in KSE-30 index. The time frame spans from 2006 to 2013 and OLS regression models were used to examine the relationshipsFindings—The resulting evidence suggest that accounting information parameters have significant influence on share price and they have joint explanatory power in determining stock prices. This research finds the consistent results with pervious empirical researches.Originality/value—The present study adds to the existing literature by examining the impact of accounting information on share prices within the context of an emerging capital market such as Pakistan Stock Exchange using KSE-30 companies. This is believed to be the first study which considers the aforementioned issues in the Pakistan’s capital market environment.

scholarly journals The Relationship Between Accrual-Based Earnings Management and Real Earnings Management: Reference to the Polish Capital Market

2020 ◽  
Vol 20 (2) ◽  
pp. 66-81
Author(s):  
Michał Comporek
Keyword(s):  
Earnings Management ◽  
Empirical Research ◽  
Capital Market ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Discretionary Accruals ◽  
Research Area ◽  
Real Earnings Management ◽  
Cross Sectional ◽  
The Relationship

Abstract Research background: The literature on the subject matter emphasizes the lack of empirical research on the relationships between accrual-based earnings management (AEM) and real earnings management (REM), while studies conducted so far are characterized by highly ambiguous results. Purpose: The main aim of the paper is to present the results of empirical research on the relationships between the AEM and REM practices used to create financial results in industrial public companies listed on the WSE. Research methodology: The research sample concerns 72 listed companies whose shares were traded on the Warsaw Stock Exchange (WSE) for a minimum 13 years in the adopted reference period of 2003–2017. The estimation of AEM and REM practices was made by using: the Jones model, the Kang-Sivaramakrishnan model and the Roychowdhury methodology. Results: The empirical results allowed showing the existence of a statistically significant, negative relationship between discretionary accruals and the abnormal level of an operational cash flow indicator, as well as between discretionary accruals and the total REM indicator. An in-depth cross-sectional analysis showed the existence of significantly differentiated relationships between the studied variables in individual branches of industry. Novelty: Research on the relationship between AEM and REM practices in the context of the Polish capital market has not been carried out so far, hence it can be considered a new research area in which there is a justified need to deepen theoretical and empirical research on the EM phenomenon.

scholarly journals Faktor-Faktor Yang Mempengaruhi Volatilitas Harga Saham Perusahaan Manufaktur

2019 ◽  
Vol 24 (1) ◽  
pp. 46
Author(s):  
Linda Santioso, Yosevin Gloria Angesti
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Price Volatility ◽  
Secondary Data ◽  
Total Sample ◽  
T Test ◽  
Share Price ◽  
Coefficient Of Determination ◽  
Manufacturing Companies ◽  
Debt Policy

The purpose of this study is to find out and analyze the influence of dividend policy, earning volatility, debt policy, growth asset and earning per share. The research method used was purposive sampling with a total sample of 35 manufacturing companies listed on the Indonesia Stock Exchange (IDX). This research was conducted using years of observation, namely 2015-2017. The type of data used is secondary data. Data is obtained from financial statements taken from www.idx.com. Data analysis method used is descriptive statistical test,multicollinearity test,f test, t test and test coefficient of determination. Testing the hypothesis in this study uses the t test. The results of the study show that the dividend policy, earning volatility, debt policy and growth asset do not have a significant effect on share price volatility, while the earning per share has a significant negative effect on share price volatility.

scholarly journals Effect of Dividend Policy Decision on Share Price Volatility (SPV) of Modaraba Companies Listed in Pakistan Stock Exchange (PSX)

2020 ◽  
Vol 18 (2) ◽  
pp. 175-189
Author(s):  
Dr. Muhammad Siddique ◽  
Keyword(s):  
Empirical Analysis ◽  
Stock Prices ◽  
Stock Price ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Price Volatility ◽  
Sampling Technique ◽  
Policy Decision ◽  
Share Price ◽  
Policy Decisions

This study aims to test the relationship between dividend policy decisions on the share price Volatility of Modaraba Companies quoted in the Pakistan stock exchange. The data for empirical analysis was collected from the Pakistan stock exchange, Recorder archive, and Ksestocks.com. By using the sampling technique, a sample of 19 Modaraba Companies was taken from 2010 to 2018. The empirical analysis was conducted using multiple regression techniques by employing a fixed effect model on panel data. This study also incorporated four control variables (size, growth, operating earning & level of debt) in empirical analysis to avoid multicollinearity problems between dividend policy measures and spurious regression. The results of the study validate the theory of relevance of dividend policy decisions on share price Volatility. Dividend policy has a negative and significant bearing on Stock price volatility. Higher leverage (debt level) leads to higher instability in stock prices. Firm earning volatility is positively associated with share price volatility. Firm size and firm's growth in terms of assets also has a negative but insignificant impact on share price Volatility

Investor recognition and stock returns: evidence from China

2018 ◽  
Vol 8 (2) ◽  
pp. 199-215 ◽  
Author(s):  
Hongquan Zhu ◽  
Lingling Jiang
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Capital Market ◽  
Univariate Analysis ◽  
Chinese Stock Market ◽  
Cross Sectional ◽  
Content Type ◽  
Listed Firms ◽  
Monthly Return ◽  
The Relationship

Purpose Merton’s model of capital market equilibrium under incomplete information predicts that contemporaneous stock returns are positively related to investor recognition and that future stock returns are negatively related to investor recognition. The purpose of this paper is to empirically investigate whether Merton’s theory holds true for the Chinese stock market. Design/methodology/approach This paper proposes the degree of shareholder base growth (SBG) as a proxy for investor recognition and examines the relationship between investor recognition and stock returns through a univariate analysis and Fama-Macbeth cross-sectional regressions based on A-Share listed firms. Findings The results show that investor recognition is nonlinearly and positively related to contemporaneous stock returns and is negatively related to future stock returns in contrast to the conclusions of Merton’s theory. A long-short trading strategy that involves buying stocks with the lowest SBG rate and that sells stocks with the highest SBG rate will earn an average monthly return of 3.615 percent. Research limitations/implications Though Merton’s theory is not fully reflected in the Chinese stock market, investor recognition is considered an important risk factor in the Chinese stock market. Originality/value No works have yet investigated the validity of Merton’s “investor cognition hypothesis” in relation to the Chinese stock market. This paper strives to fill this gap.

scholarly journals The role of dividend policy in share price volatility

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Lydia Pelcher
Keyword(s):  
Dividend Policy ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Wealth Distribution ◽  
Price Volatility ◽  
Shareholder Wealth ◽  
Share Price ◽  
Wealth Creation ◽  
Top 40 ◽  
A Company

Orientation: A key objective of a company is to maximise shareholder wealth. Distribution of created wealth is achieved either through reinvestment in the company, which increases share value, or through dividend payouts. This encapsulates the dividend policy of a company. In order to realise a cash return, the former requires an investor to liquidate part of the investment, while the latter provides an immediate cash return.Research purpose: The objective was to establish whether relationships exist between share price volatility and dividend policy for shares listed on the Johannesburg Stock Exchange Limited (JSE).Motivation for the study: Dividend policy is an important consideration in the wealth creation process, particularly whether or not to distribute dividends to shareholders. Dividend policy is often structured to cater for shareholders’ expectations.Research design, approach and method: Panel data analysis was employed on a sample of the top 40 JSE-listed shares from 2007 to 2016.Main findings: The results indicated that the association between share price volatility and dividend yield is positive and significant but that between share price volatility and payout ratio is insignificant.Practical/managerial implications: Dividends were proven to be relevant to shareholders and have an association with share price volatility.Contribution/value-add: Dividend policy for the top 40 companies listed on the JSE is a contributor to share price volatility. In order to minimise share price volatility, managers of dividend-paying companies should structure the dividend policy to have consistent dividend payments but also able to reinvest excess cash within the company.

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