Dividends and Its Effect

IMPACT OF DIVIDEND ON STOCK PRICE Introduction: This paper attempts to take the disturb of dividend policy on line of reasoning price risk. A sample of 160 listed companies in major Stock Exchanges is examined for a particular period. The empirical estimation is based on a cross-sectional regression analysis of the kinship between contrast price volatility and dividend policy after controlling for loyal surface, earning volatility, leverage and asset growth. Dividend policy measures both dividend yield and payout ratio, which deliver significant impact on the share price volatility. The relationship is non reduced much even after controlling for the above mentioned factors. This suggests that dividend policy affects stock price volatility and it provides severalize supporting the arbitrage realization effect, duration effect and culture effect. Dividend policy affects the overall price only during the end of the look into period. Whereas payout ratio measure is having significant impact only at lower level of significance. In overall period the size and leverage have positive and significant impact on stock price volatility. The size effect is negative during pre renew period but positive during reform period. The earning volatility impact is negative and significant only during reform period.

Although the results are not robust enough as in the case of essential markets but are consistent with the behavior of emerging markets. straight in order to continue any further with the matter the reader must be made familiar with the adjacent aspects: SHARE: In finance a share is a unit of account for various financial instruments including stocks, mutual funds, and limited partnerships. In simple words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a... If you want to scramble a full essay, order it on our website: Orderessay

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