scholarly journals Impact of Dividend Policy on Share Price Evidence from Textile Sector PSX-100 Index

2018 ◽  
Vol III (IV) ◽  
pp. 616-630
Author(s):  
Sanaullah Khan ◽  
Muhammad Faizan Malik ◽  
Shehzad Khan
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Share Price ◽  
Empirical Estimation ◽  
Effect Model ◽  
Independent Variable ◽  
The Impact ◽  
The Relationship

This paper attempts to determine the impact of dividend policy on stock price in Pakistan. A sample of 20 textile listed companies in PSX is examined for a period from 2010 to 2017. The empirical estimation is based on a panel regression analysis of the relationship between dividend policy and share price and also used fixed effect model. Secondary data were used by the researcher in the study. The study has taken share price as a dependent variable while the dividend policy is an independent variable. The dividend policy was measure by different proxy such as SDS, DPR, EPS, PAT and ROE. The result explained that the ROE and EPS have significant positive relationship with share price while the SDS, PAT and DPR have negative association with share price. Although the results are not robust enough as in the case of developed markets but are consistent with the behavior of emerging markets

scholarly journals The Impact of Dividend Policy on Stock Price Volatility in Pakistan

2019 ◽  
Vol IV (I) ◽  
pp. 506-515
Author(s):  
Ziaullah Shah ◽  
Shehzad Khan ◽  
Muhammad Faizan Malik
Keyword(s):  
Panel Data ◽  
Stock Price ◽  
Dividend Policy ◽  
Price Volatility ◽  
Fixed Effect Model ◽  
Share Prices ◽  
Dividend Payments ◽  
Effect Model ◽  
Dividend Irrelevance ◽  
The Impact

The objective of this study is to inspect dividend policy influence on volatility of share prices. For investigation seven Non-financial segment/sectors have been selected. A sample of 137 firms who paid four dividend payments listed at PSX is analysed for the period of 2007-2017.Proxy for policy of dividend are earning per share, Payout ratio, dividend yield, while assets growth and firm size are taken as control variables. OLS regression model has been initially applied on panel data. The outcomes of fixed effect model are focused. Overall outcomes of the study confirmed that prices of stock is significantly influenced by policy of dividend and reject dividend irrelevance theory.

scholarly journals The accounting numbers and investment decisions in emerging markets

2015 ◽  
Vol 12 (2) ◽  
pp. 443-454
Author(s):  
Husni K. Al-Shattarat
Keyword(s):  
Transaction Costs ◽  
Stock Price ◽  
Dividend Policy ◽  
Price Volatility ◽  
University Education ◽  
Share Price ◽  
Dividend Yield ◽  
Stock Price Volatility ◽  
The Impact ◽  
The Relationship

The main objective of this study is to determine the impact of dividend policy on stock price in Kuwait Firms. the study adopts the quantitative technique, gathering data from official listed Kuwaiti companies. All non-financial firms listed in Kuwait Stock Exchange from 1994 to 2003 This study will be based on a cross-sectional regression analysis of the relationship between stock price volatility and dividend policy after controlling for firm size, earning volatility, leverage and asset growth. Both dividend policy measures (dividend yield and payout ratio) have significant impact on the share price volatility.and examines the influence of dividend policy on stock price volatility and suggests the use of the following control variables in testing the significance of the relationship between dividend yield and price volatility: operating earnings; size of the firm; level of debt financing; payout ratio; and level of growth. These variables have a clear impact on stock returns but also impact on dividend yield. ‘SPSS’ statistical package to run statistical tests and answer study questions. Basic descriptive statistics (Mean, Standard Deviations) and frequency distribution were computed for each variable/question. Ordinary Least Squares (OLS) coefficient estimates are used in this study. F-tests are used to test for the relationship between stock price volatility and dividend policy. The results show that preference for dividends is larger amongst older investors, compared to younger investors. Old investors and investors without university education all have a preference for dividends because of transaction costs. On the other hand, young investors and investors with a university education have less interest in dividends based on transaction costs. The results also suggest that the watch for dividends as a safeguard measure is still “old-fashioned”, even in light of the recent accounting scandals.The results also indicate that individual investors believe that dividend payments contain a signal about the profitability of the firm

Effect of Dividend on Stock Price: A Case of Fuel and Power Industries in Bangladesh

2019 ◽  
Vol 9 (2) ◽  
pp. 87
Author(s):  
Mir Md Nazrul Islam
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Random Effect ◽  
Random Effect Model ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Return On Equity ◽  
Share Prices ◽  
Earnings Per Share ◽  
Effect Model

Dividend policy is an extensively researched topic in the arena of investments but still it remains an enigmatic that whether Dividend Policy affects the Stock Prices or not. The consequences of researches conducted in different stock markets are different. In Bangladesh, capital market investment is very essential and significant for the growth and market capitalization of domestic industry, trade and commerce. In current years Bangladesh had faced many precarious situations in its stock market. The Stock price reactions to the declaration of dividend of the fuel and power industry of Bangladesh are empirically examined. This study examines stock price reactions of listed dividend paying fuel and power industries in Dhaka stock exchange, Bangladesh for period of 11 years from of 2008-2018. This study will help us to make effective dividend decisions and effective implementation of dividend policies. In this study, Fixed Effect Model along with Random Effect Model have been used to estimate results. Both Models are implemented on panel data for explaining the association between dividend payments and share prices while controlling logarithm value of Profit after Tax, Earnings per Share and Return on Equity. The research is accompanied with a view to find whether the dividend announcement convey any evidence to the market that results a stock price volatility for adjusting the dividend announcement information while controlling the variables like Profit After Tax Earnings, Per Share and Return on Equity. The study also tested both the Models and found Random Effect Model is more significant than Fixed Effect Model. The result documented on the Random Effect Model shows that there are significant relationship with Retention Ratio, dividend per share and Return on Equity. In addition, Profit after tax shows the negative significant association and Earning per Shares insignificant with the share prices in Bangladesh Fuel and Power sector. 

Dividend policy and stock price volatility of industrial products firms in Malaysia

2018 ◽  
Vol 13 (1) ◽  
pp. 203-217 ◽  
Author(s):  
Rozaimah Zainudin ◽  
Nurul Shahnaz Mahdzan ◽  
Chee Hong Yet
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Price Volatility ◽  
Industrial Products ◽  
Stock Price Volatility ◽  
Dividend Payout ◽  
Content Type ◽  
Crisis Period ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to analyse the relationship between stock price volatility (SPV) and dividend policy of industrial products firms listed on Bursa Malaysia. Design/methodology/approach The sample comprises 166 industrial products public-listed firms covering a time span from year 2003 to 2012. Using Baskin’s framework, firm’s SPV is related to dividend payout, controlling for earnings volatility, firm size, leverage and growth of assets. Further, the impact of the global financial crisis on the relationship between SPV and the tested variables is examined. Findings Earning volatility significantly explains SPV of industrial product firms during the crisis period, while dividend payout ratio (PR) predominantly influences volatility during pre- and post-crisis sub-periods. The empirical results indicate that dividend policy is a strong predictor of SPV of industrial products firms in Malaysia, particularly during the post-crisis period. Originality/value The paper explores the firm’s SPV and dividend policy for a new set of data focussing on industrial products firms listed on the Malaysian Stock Exchange.

scholarly journals Impact of Dividend Policy on Shareholders’ Wealth: An Empirical Analysis of Listed Insurance Companies in Pakistan

2021 ◽  
Vol 4 (1) ◽  
pp. 69-80
Author(s):  
MUHAMMAD SHABEER KHAN ◽  
DR. SAID SHAH ◽  
SYEDA UROOJ BABER
Keyword(s):  
Dividend Policy ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Companies ◽  
Ratio Analysis ◽  
Retention Ratio ◽  
Analysis Techniques ◽  
Independent Variable ◽  
Convenience Sampling ◽  
The Impact

This study aims to investigate the impact of dividend policy on shareholders’ wealth using secondary data of 17 listed insurance companies in Pakistan employing non-probability convenience sampling for 2012-2015. Shareholders’ wealth is used as dependent variable measured by earning per share whereas dividend policy as independent variable measured by three ratios namely dividend per share, Retention ratio and dividend payout ratio. Analysis techniques include descriptive statistics, regression analysis and correlation analysis. The results show that all the independent variables impact dependent variable positively with dividend per share and retention ratio significant at 5%. Moreover study reveals that the theory of dividend irrelevancy failed in the case of insurance industry of Pakistan.

A Test of Miller and Modigliani Dividend Policy Irrelevance Theory in Nigerian Stock Market

2018 ◽  
Vol 2 (2) ◽  
pp. 1-13
Author(s):  
Udobi, Philomina I ◽  
Iyiegbuniwe, Wilfred I.
Keyword(s):  
Direct Effect ◽  
Indirect Effect ◽  
Stock Price ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Share Price ◽  
Mediation Analyses ◽  
Dividend Irrelevance

This study empirically tests for the validity of Miller and Modigliani’s dividend irrelevance proposition in the Nigerian Stock Exchange (NSE). Secondary data were obtained from the Nigerian Stock Exchange fact book and firms’ annual audited financial statements for fifteen years (2001-2015). Mediation Analyses, was used to measure the direct and indirect effects of dividend on stock price. Correction of the anomalous use of current dividend and current earnings by the use of naive expectation of dividend and earnings revealed that the direct effect of expected dividend on share price is significant but the indirect effect of expected dividend on share price through earnings is not significant.  The implication of these results is that expected dividend has its unique (direct) effect on share price beyond the effect on share price which it shares with expected earnings (indirect effect). This conclusion suggests that dividend policy is relevant in valuation of shares in NSE. It was therefore recommended that company management should treat dividend as an active corporate finance decision-making variable and should employ dividend in information signalling to capital market investors.

scholarly journals Research on the relationship between investor network interaction and stock price fluctuation——Take “SSE e interaction” as an example

2021 ◽  
Vol 235 ◽  
pp. 01072
Author(s):  
Chunmiao Ren
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Information Dissemination ◽  
Fixed Effect Model ◽  
Dominant Factor ◽  
Price Fluctuation ◽  
Information Efficiency ◽  
Effect Model ◽  
Negative Sentiment ◽  
The Impact

Whether the stock price fluctuation in emerging markets such as China is dominated by “information efficiency” or “noise” has aroused many scholars’ disputes. Based on the “SSE e interaction” Q & A data, this paper uses the fixed effect model to study the impact of “SSE e interaction” on the stock price synchronization from 3 perspectives: the lag of the company’s response, the pertinence and the negative emotional tendency of investors. The research found that the targeted response of listed companies to investors’ questions in the “SSE e interaction” significantly improved the synchronization of stock prices, and the lag of the response may be the result of selective and tendentious information dissemination. The negative sentiment of investors has certain information content, but excessive negative sentiment may bring noise to the market. Our research shows that information and “noise” coexist in China’s capital market, but “noise” is still the dominant factor in stock price fluctuations.

scholarly journals Effect of Economic Growth on Poverty in Bima City

2020 ◽  
Vol 1 (2) ◽  
pp. 59-64
Author(s):  
Anggun Aisatun Zahroh ◽  
Puji Muniarty ◽  
Julaiha Julaiha
Keyword(s):  
Economic Growth ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
The Past ◽  
Comprehensive Picture ◽  
Independent Variable ◽  
The Impact ◽  
The Relationship ◽  
The City ◽  
Constant Prices

Natural disasters and inflation that occurred in the city of Bima caused economic growth to slow down and cause the impact of social inequality that causes poverty. This study aims to analyze the effect of independent variables on the dependent variable. The independent variable in this study is economic growth while the dependent variable is poverty in the City of Bima for the period 2012-2018. The sample in this study is economic growth in the form of GDRP data based on constant prices and poverty over the past 7 years, from 2012 to 2018. The data used in this study are in the form of a list of tables on economic growth in the form of GDRP based on constant prices and poverty during 7 years obtained from the Central Statistics Agency office in Bima City. The data used are secondary data and the method used is simple linear regression analysis, simple correlation coefficient, simple linear determination and t test (2 parties) using SPSS Version 21.0 to obtain a comprehensive picture of the relationship between one variable with another variable. The results showed that economic growth had no effect and was not significant on poverty in the Bima city.

scholarly journals ANALISIS KESEMPATAN KERJA PADA SEKTOR PARIWISATA (SUB SEKTOR PERHOTELAN) DI PROVINSI-PROVINSI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 626
Author(s):  
Fitri Yulianti ◽  
Sri Ulfa Sentosa
Keyword(s):  
Secondary Data ◽  
Fixed Effect Model ◽  
Negative Influence ◽  
Variable Number ◽  
Employment Opportunities ◽  
Job Opportunities ◽  
Effect Model ◽  
Hospitality Sector ◽  
Hotel Sector ◽  
The Impact

This research purpose are to the analyse how the impact of the number of accommodation business, number of visitors to accommodation, output of the hotel sector and the wage on the employment opportunities of the hotel sector in the Indonesian Provinces using the panel regression method based on the fixed effect model (FEM) approach. This type of research is descriptive and associative research, where the data used are secondary data in the form of panel data (pool time series) from 33 provinces in Indonesia during the period 2012-2016. The results of this study indicate that the variable number of business accommodations, the number of visitors to accommodation has a positive and significant effect on the employment opportunities in the hotel sector in the Indonesian Provinces, the hotel sector's output variables have a positive but insignificant effect on the hospitality sector employment opportunities in the Indonesian Provinces and wages have a non-significant negative influence on the employment opportunities in the hotel sector in the Indonesian Provinces.Keywords: Hospitality Sector Job Opportunities, Accommodation Business, visitors to accommodation, Hospitality Sector Output, Wage

scholarly journals The impacts of IPO financing and monetary policy on economic growth in Bangladesh: Evidence from a dynamic assessment

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Sagira Sultana Provaty
Keyword(s):  
Stock Price ◽  
Dividend Policy ◽  
Service Industry ◽  
Dynamic Assessment ◽  
Price Volatility ◽  
Dividend Yield ◽  
Stock Price Volatility ◽  
Independent Variables ◽  
The Impact ◽  
The Relationship

The impact of dividend policy on stock price volatility is one of the most researched topics of corporate finance. This study investigates the relationship between stock price volatility and dividend policy among Bangladeshi financial service industry companies. Two key variables - dividend yield and dividend payout have been taken as the independent variables after controlling for firm size, asset growth, earnings volatility, long-term debt, and earnings per share. The stock price volatility has been taken as the dependent variable. Panel regression analysis is employed to explore the relationship of dependent with independent variables. Results reveal a significant positive relationship between stock price volatility and dividend yield among companies considered in this study. This study will help regulators and investors understand how the stock price fluctuates in response to financial information such as dividend announcements

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