scholarly journals Dividend Policy and Share Price volatility: Evidence From Pakistan Stock Exchange of Listed Commercial Banks

2019 ◽  
Vol 5 (1) ◽  
pp. 35
Author(s):  
Laeeq Ahmad ◽  
Yasir Iftikhar ◽  
Sarmad Ejaz ◽  
Waqas Baig ◽  
Kashif Nadeem ◽  
...  
Keyword(s):  
Commercial Banks ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Price Volatility ◽  
Share Price ◽  
Retention Ratio ◽  
Return On Equity

This study examines the all possible dividend policy effect on commercial banks stock price listed at Pakistan stock exchange. The study covers 17 listed commercial banks for the time period 2014 to 2017. To analyze secondary data multiple regression analysis was applied using Stata with the model (MP) Market Price Per Share as the dependent variable and (EPS) Earning Per Share, (ROE) Return on Equity, (RR) Retention Ratio and (DY) Dividend Yield are independent variables. Descriptive statistics were applied to data to check mean, median, maximum and minimum value. The finding of the study shows that EPS shows a highly significant positive impact on the share MP and the other three independent variable return on equity, dividend yields, and retention ratio also show a significant but negative impact on the share MP. These results support the finding of previous studies done by another researcher in the past.

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 PENGARUH KEBIJAKAN DIVIDEN, LEVERAGE, DAN UKURAN PERUSAHAAN TERHADAP VOLATILITAS HARGA SAHAM

2019 ◽  
Vol 8 (10) ◽  
pp. 5887
Author(s):  
Ni Luh Putu Sintya Marini ◽  
Sayu Ketut Sutrisna Dewi
Keyword(s):  
Firm Size ◽  
Stock Price ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Price Volatility ◽  
Stock Price Volatility ◽  
Natural Logarithm ◽  
The Impact

Stock price volatility reflects the fluctuations on stock price movements and the level of risk faced by investors. This research examines the impact of dividend policy, leverage, and firm size on stock price volatility. The research variables were measured by dividend payout ratio, debt to equity ratio, and natural logarithm of total assets. This research was conducted on 19 samples of property, real estate, and construction sector companies listed in Indonesia Stock Exchange (IDX) that distributed consecutive dividends during 2013-2017. Multiple linear regression used as the analysis technique. The analysis result shows that simultaneously dividend policy, leverage, and firm size influence stock price volatility. Partially dividend policy and firm size has negative impact on stock price volatility while leverage has positive impact on stock price volatility. Keywords : dividend, leverage, firm size, volatility

scholarly journals Dividend Policy, Share Price and Future Profitability: Case of Commercial Banks in Nepal

2018 ◽  
Vol 1 (1) ◽  
pp. 89
Author(s):  
Nabia Dhakal ◽  
Ajay Shah
Keyword(s):  
Capital Market ◽  
Commercial Banks ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
Share Price ◽  
Significant Negative Impact ◽  
Special Information ◽  
The Impact

<p>The study analyzes the impact of dividend policy on share price and future profitability of commercial banks in Nepal. Using panel secondary data of 13 commercial banks from year 2001 to 2014, correlation and regression analysis are applied for the study. The impact of dividend policy on share price is analysed first and the findings of initial analysis suggests that dividend yield and retention ratio have significant negative impact, whereas earning per share has significant positive impact on share price. The study, thus, supports the dividend relevance in Nepalese capital market, and it is further extended to analyze whether dividend changes carried any special information influencing future profitability of commercial banks in two subsequent year of dividend declaration. The conclusion from the analysis indicates that the current year dividend change has significant impact on current year earning changes. For subsequent years, the impact of dividend change is insignificant. Thus, dividend change does not carry information regarding changes in earning in subsequent years of dividend declaration and does not support signalling hypothesis in Nepalese capital market.</p><p>Journal of Business and Social Sciences Research, Vol. 1, Issue 1, pp. 89-110</p>

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP NILAI PERUSAHAAN DENGAN PROFITABILITAS SEBAGAI VARIABEL INTERVENING (Studi Pada Perusahaan Perbankan Di Bursa Efek Indonesia)

2018 ◽  
Vol 5 (2) ◽  
pp. 45-58
Author(s):  
G. A Sri Oktaryani ◽  
I Nyoman Nugraha Ardana P ◽  
Iwan Kusuma Negara ◽  
Siti Sofiyah ◽  
I Gede Mandra
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Price ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Significant Direct Effect

This research examines the effect of Good Corporate Governance (GCG) on firm value by using profitability as intervening variable.  Profitability is proxied by Return On Asset (ROA) and Return On Equity (ROE). This study used a quantitative approach and path analysis. The population consists of 35 firms that were listed in Banking sector of Indonesian Stock Exchange over period 2013 – 2015. There are 34 firms are choosen as samples which has published GCG composit index throughout observation years and has not done corporate action that could affect the stock price directly. The findings show that GCG has positive and significant direct effect on firm value. Furthermore, ROA has positive impact on firm value; meanwhile ROE has negative impact on firm value. The results also show that the better the implementation of GCG the higher the Return on Asset. Moreover, the indirect effect of GCG on firm value through profitability is not significant. Keywords: GCG, profitability, ROA, ROE, firm value.

scholarly journals Employee Benefits Accounting, Its Impact on the Market Share Price, the Volume of Credit Facilities and Deposits

2017 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Mohammad Hamdan ◽  
Marie Bany Khaled ◽  
Sakhr Bany Khaled
Keyword(s):  
Market Share ◽  
Positive Impact ◽  
Stock Exchange ◽  
Market Price ◽  
Employee Benefits ◽  
Share Price ◽  
Economic Statistics ◽  
Amman Stock Exchange ◽  
The Impact ◽  
Descriptive Method

This study aims to examine the impact of employee benefitsaccounting (direct and indirect compensation) on (market price, volume of credit facilities and volume of deposits). The study community is represented by commercialbanks listed on the Amman Stock Exchange (ASE), all the continuous banks whose financial data were available during the study period (2007-2015) were selected represented in (13) banks. In order to realize the objectives of the study, the study was based on qualitative data and analytical descriptive method (Panel Data), (E-Views) economic statistics software was used to test hypotheses. The results of the study showed that there is a statisticallysignificant impact on both typesof employees compensations as a whole (direct and indirect) on the market share price, the volume of credit facilities and the volume of deposits. While the results of the study confirmed that the indirect compensation has not got an impact on the volume of customer deposits when it is measured separately. Finally, the study recommended the need to apply good systems that take into account the interest of both the employers and employees for the positive impact on the market share price, the volume of credit facilities and the volume of deposits.

scholarly journals Fundamentals of Stock Price in Nepalese commercial banks

2019 ◽  
Vol 4 ◽  
pp. 83-98
Author(s):  
Prem Prasad Silwal ◽  
Samrina Napit
Keyword(s):  
Commercial Banks ◽  
Stock Price ◽  
Stock Exchange ◽  
Market Price ◽  
Negative Relationship ◽  
Influential Factor ◽  
Share Price ◽  
Cross Sectional ◽  
Book Value ◽  
Price Earnings Ratio

The aim of this study is to ascertain the determinants of the stock market price in Nepalese commercial banks for the period of 2065/66 to 2074/75. It is based on pooled cross-sectional data of ten banks for 10 years whose stocks are listed in Nepal stock exchange. The study employed correlational and causal comparative research design and result reveals that book value per share, price earnings ratio, return on equity have positive relationship with stock price. Dividend yield has positive but minimum influence on the price of the stock whereas size has negative relationship and is statistically insignificant with stock price. Further, it reveals that book value per share is a most influential factor that determines stock price in Nepal.

scholarly journals Impact of Corporate Governance on Dividend Policy: Evidence from Pakistan

2021 ◽  
Vol 3 (3) ◽  
pp. 353-366
Author(s):  
Abdul Hameed ◽  
Farheen Zahra Hussain ◽  
Khawar Naheed ◽  
Muhammad Sadiq Shahid
Keyword(s):  
Corporate Governance ◽  
Dividend Policy ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Least Square ◽  
Political Connection ◽  
Dividend Payment ◽  
The Impact

Purpose: The objective of the paper is to examine the impact of corporate governance on the dividend payout policy of firms listed on the Pakistan stock exchange during 2010-2020. As Pakistani investors face issues regarding their return in the shape of dividends and depend upon the firm’s corporate governance strength. To test whether changes in firm code of corporate governance have a significant influence on dividend policy. Design/Methodology/Approach: The panel data has been used for the period 2010-2020 and panel least square has been applied. Further, to test the association, following factors such delisting risk, government tenure, political connection with institutional shareholding as many political firms hold corporate shares which influence the decision to pay dividends. Findings: Findings from the fixed effect model show that corporate governance has a negative impact on dividend policy while government tenure, politically connected firm has a positive impact on the dividend. The study also concludes that firm size, profitability, tax, asset turnover, leverage, and firm shareholding also influence firm dividend payment behavior. Implications/Originality/Value: The implication of study reveals that firms must focus on strong their governance and include more independent directors on the board which leads to favorable strategies regarding investors. The investor must invest in those firm where lower political connection, pay continuous dividend either high or low decease/increase delisting chances, strong corporate governance and firm specific factors also lead to make decision of dividend payment.

scholarly journals Impact of dividend policy on stock price volatility and market value of the firm: evidence from Sri Lankan manufacturing companies

2016 ◽  
Vol 13 (3) ◽  
pp. 219-225 ◽  
Author(s):  
UGVDD Gunarathne ◽  
WAN Priyadarshanie ◽  
SMRK Samarakoon
Keyword(s):  
Dividend Policy ◽  
Negative Impact ◽  
Price Volatility ◽  
Market Value ◽  
Share Price ◽  
Sri Lankan ◽  
Manufacturing Companies ◽  
Dividend Yield ◽  
Dividend Payout ◽  
The Impact

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.

scholarly journals Business diversification of coal mining companies as a strategy facing coal price volatility

2021 ◽  
Vol 3 (4) ◽  
pp. 38-50
Author(s):  
Gusnawan Adi Putra ◽  
Sri Mulyantini ◽  
Dianwicaksih Arieftiara
Keyword(s):  
Coal Mining ◽  
Stock Prices ◽  
Negative Impact ◽  
Positive Impact ◽  
Stock Exchange ◽  
Commodity Prices ◽  
Price Volatility ◽  
Company Performance ◽  
Coal Price ◽  
Significant Difference

This study aims to determine the effect of business diversification on stock prices by mediating company performance, represented by the variable ROE and EPS in a fluctuating coal price situation. The data used are 16 companies engaged in coal mining in Indonesia and listed on the Indonesia Stock Exchange (IDX) from 2012 to 2019. Using two analysis methods: path analysis to examine direct and indirect relationships between variables and different tests to see differences in the performance of companies that diversify and do not diversify. The results showed that coal commodity prices had a significant positive effect on stock prices and indirectly, through ROE and EPS, had a significant positive impact on stock prices. Business diversification directly has a significant negative impact on stock prices and indirectly through EPS positively affects stock prices. Business diversification provides a substantial difference to EPS and does not provide a significant difference to ROE.

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