Dividend Announcements and Contagion Effects: An Investigation on the Firms Listed with Dhaka Stock Exchange

Misir, M. Abu

doi:10.32890/ijms.17.1.2010.9983

Cited by 3 publications

(2 citation statements)

References 24 publications

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“…Investors will keep a stock if it pays a high dividend. If the returns are low, investors will sell the shares and buy higher-paying stocks (Misir, 2010). Individual investors who are taxed at a higher rate do not prefer either high or low dividends.…”

Section: Theoretical Reviewmentioning

confidence: 99%

Shareholders’ Dividend Preference in the Nigerian Capital Market

Salawudeen

Isa

Dandago

2022

International Journal of Management Studies

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Aside from the fact that no legislation requires, as we believe, that management has a distinct fiduciary commitment to shareholders, no act prioritizes the shareholder. The management’s fiduciary duty is solely to the corporation. Investors, on the other hand, have a votive claim to the corporation’s residual value once all other obligations have been met. The aim of this survey was to empirically investigate the dividend preference of shareholders in the Nigerian capital market with specific reference to listed manufacturing firms in Nigeria. The study used the design of an investigation using questionnaires and interviews. The target population was 500 shareholders selected based on stratified random sampling out of 682,100 shareholders that is 0.07 percent of the total population. The snowball sampling technique was used to recruit potential respondents from among the shareholders’ acquaintances. The study used a final sample size of 300 respondents from the shareholders. The validity and reliability of the instrument were tested using factor analysis and a Cronbach’s alpha coefficient of 0.72 was obtained. The mean ranking showed that shareholders do have significant dividend preferences which favor cash dividends and support a bird in the hand is worth two in the bush explanation. Given that in practice, shareholders prefer companies with stable and predictable dividend payments, this study could be used to correct and predict the direction of a company’s dividend payments and that the stability of dividend payments change over time.

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Section: Theoretical Reviewmentioning

confidence: 99%

Shareholders’ Dividend Preference in the Nigerian Capital Market

Salawudeen

Isa

Dandago

2022

International Journal of Management Studies

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“…Misir (2010) stated that variations in dividend announcements impart tidings about the earnings of the company, which affects market price of shares of the companies listed in Dhaka Stock Exchange (DSE). Hasan, Akhter and Huda (2012) empirically confirmed the market price reaction of companies listed on Dhaka Stock Exchange over the announcements of cash dividend in the event date and post event date Uddin (2009).…”

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The Impact of Dividend per Share on Stock Price of Companies Listed on Dhaka Stock Exchange

-¹,

-²,

-³

2022

IJFMR

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This study intends to observe the impact of dividend per share on stock price of companies listed on Dhaka Stock Exchange. The study uses a firm-level panel data set of 61 companies from eight major sectors of DSE for ten years from 2008 to 2017. Pearson correlation was used to examine the relationship between dividend per share and stock price of each sector under the study and mixed results were found. Simple linear regression was also used to investigate the impact of dividend per share on stock price. The findings of the impact of dividend per share on stock price of companies of eight selected sectors produced very interesting results. The results of simple linear regression show that Banking, Food & Allied Product, Pharmaceuticals & Chemicals and Insurance sectors have significant impact of dividend per share on stock price, which supports the relevance theory of dividend i.e., Walter’s model and Gordon’s model. Furthermore, dividend per share has significant positive impact on stock price of Food & Allied Product and Pharmaceuticals & Chemicals sectors, while in Banking and Insurance sector, dividend per share has significant negative impact on stock price. On the other hand, there is no significant relationship between dividend per share and stock price of Financial Institutions, Engineering, Fuel & Power and Textile sectors, which supports Irrelevance theory of dividend i.e., MM Hypothesis. Thus, the impact of dividend on stock price has still remained a controversial issue. That is, dividend puzzle (Black, 1976) has not yet solved.

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Factors Influencing Dividend Payout Policy: An Investigation of Food and Allied Companies Listed on the Dhaka Stock Exchange Limited

Nuruzzaman

2024

African Journal of Accounting and Financial Research

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The main objective of the study is to identify if there is a relationship between a number of company-selected factors such as Profitability, Liquidity, Size, Growth, Leverage and Taxation of Food and Allied Companies Listed in the Dhaka Stock Exchange and the companies’ dividend payout ratio which is used as a proxy of dividend payout policy. A sample of seven companies has been taken from Food and Allied Companies listed in DSE following a purposive sampling technique. To meet the objective of this research, ten-year financial data from 2011-2020 of listed food and allied companies is used and examined to determine the impact of selected variables on dividend payout. The random effect regression model was used as suggested by the result of the Hausman test to test the relationship between dividend determinants and dividend payout. Results indicate that among the independent variables Size and Profitability significantly impact the dividend payout policy but in terms of robustness of the model, Liquidity, Size and profitability significantly impact the dividend payout policy of Food and Allied companies listed in DSE. Taking into consideration these findings, it can be said that firms having higher profitability are most likely to pay more dividends. Firms with higher liquidity, growth, size, leverage and taxation pay fewer dividends and vice versa.

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Dividend Announcements and Contagion Effects: An Investigation on the Firms Listed with Dhaka Stock Exchange

Cited by 3 publications

References 24 publications

Shareholders’ Dividend Preference in the Nigerian Capital Market

Shareholders’ Dividend Preference in the Nigerian Capital Market

The Impact of Dividend per Share on Stock Price of Companies Listed on Dhaka Stock Exchange

Factors Influencing Dividend Payout Policy: An Investigation of Food and Allied Companies Listed on the Dhaka Stock Exchange Limited

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