Effect of Dividend Policy on Stock Prices

ALİ, Adnan; Jan, Farzand Ali; Sharif, Ilyas

doi:10.15295/bmij.v3i1.23

Cited by 9 publications

(8 citation statements)

References 14 publications

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“…In the case of Accord Textile Ltd and Al-Azhar Textile Ltd, the dividend payout ratio had positive association with stock price volatility. Our findings are in accordance with findings of Ali et al (2015), Zakaria et al ( 2012), and Oyinlola and Ajeigbe (2014). They reported that dividend payout ratio is positively affecting the stock price volatility.…”

Section: Discussionsupporting

confidence: 94%

“…Their results revealed that dividend policy had no impact on stock price volatility in Pakistan. Ali et al (2015), also conducted a similar type of research to investigate the impact of dividend policy on stock prices. They have analyzed 45 non-financial companies listed on KSE-100 index that earned profits for a period of twelve year w.e.f.…”

Section: Review Of Literaturementioning

confidence: 99%

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The Impact of Dividend Policy on Stock Price Volatility: A Case Study of Selected Firms from Textile Industry in Pakistan

Ullah¹,

Saqib²,

Usman³

2016

IJAREMS

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The study aims at investigating the relationship between dividend payout and the stock price of listed companies in Karachi Stock Exchange and to establish the extent of the relationship between them. The data were collected from Karachi Stock Exchange from 2003 to 2008. Five firms from textile industry were selected purposively. Stock price was dependent variable while the independent variable was dividend payout ratio. The size of firm, earning volatility and growth were selected as controlled variables. Multiple regression model was employed to explore the relationship of dependent with independent variables. Results showed that overall models were good fit showed by coefficient of determination values. Dividend payout ratio was significantly affecting the stock price. Other variables sowed mixed results in some models were found significant.

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Section: Discussionsupporting

confidence: 94%

Section: Review Of Literaturementioning

confidence: 99%

The Impact of Dividend Policy on Stock Price Volatility: A Case Study of Selected Firms from Textile Industry in Pakistan

Ullah¹,

Saqib²,

Usman³

2016

IJAREMS

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“…On the basis of results, the DY ratio is not a good predictor of oil and gas companies stock returns. The result is also supported by these studies where they also found the DY ratio as insignificant such as & (Ali, et al, 2015)…”

Section: Results Hypothesissupporting

confidence: 65%

The Relationship between Fundamental Variables and Stock Returns in the Oil and Gas Companies of Pakistan

Faisal¹

2022

PSSR

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This paper investigates the relationship between annual stock returns, book to market ratio, dividend yield ratio and price to earnings ratio. A sample of twelve oil and gas sector companies listed on the Pakistan Stock Exchange (PSX) were selected. The annual average values for the suggested variables from 2008 to 2017 were obtained and calculated. The panel data regression method using random effect model was applied. The result of the paper show that only book to market ratio has positive correlation and has a significant impact on the stock returns and has the ability to predict future returns for investors. While, the other ratios, like, dividend yields, price to earnings ratio have a positive correlation but insignificant impact on the stock returns. Findings of this study suggest that investors can use and apply the investment criteria that utilizes book to market ratio to earn returns on their investment and minimize the risk on the investments.

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“…One form of dividend policy is related with the amount that firm pay measured as the proportion of dividend pay divided by profit after tax. The previous researches related the effect of Dividend Policy on Stock Return found on Sharif et al (2015) and Hasan et al (2013) which resulted positive significant relationship, while Ahmad (2018) stated negative significant affected with Irandoost et al (2013) suggest that the positive significant effect is only short term in nature.…”

Section: Dividend Policymentioning

confidence: 96%

Dividend Policy, Economic Value Added, Market β, Firm Size and Stock Return

Surjandari¹,

Wati²

2020

AFR

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This study aims to analyze the Effect of Dividend Policy, Economic Value Added (EVA), Market β and Firm Size on Stock Return and the existence of Firm Size in moderating these effects of blue-chip stock category listed in Indonesia Stock Exchange (IDX) during 2015 up to 2019 period. This study is a confirmatory research involving secondary data collected from annual report available at IDX website. The sample used is purposive sampling and research object is Dividend Policy, EVA, Market β and Firm Size as independent variables and Stock Return as dependent variable, and Firm Size as moderates variable. The analysis is performed using E-views 11.0 version. The result shows that Dividend Policy has significant negative effects while EVA and Market β has no effect on Stock Return. In addition, Firm Size moderates the relation between Dividend Policy and Stock Return, while having no moderating effect to the relation between EVA, Market β and Stock Return. The findings of this research imply that, for high stock performance like blue-chip stock, Dividend Policy affects the Stock Return and Firm Size moderates this effect.

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Effect of Dividend Policy on Stock Prices

Cited by 9 publications

References 14 publications

The Impact of Dividend Policy on Stock Price Volatility: A Case Study of Selected Firms from Textile Industry in Pakistan

The Impact of Dividend Policy on Stock Price Volatility: A Case Study of Selected Firms from Textile Industry in Pakistan

The Relationship between Fundamental Variables and Stock Returns in the Oil and Gas Companies of Pakistan

Dividend Policy, Economic Value Added, Market β, Firm Size and Stock Return

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