Dividend Policy and Share Price Volatility: Evidence from Pakistan

1
Dr.Yasir Habib
Dr.Yasir Habib
2
Zernigah Irshad Kiani
Zernigah Irshad Kiani
3
Muhammad Arif Khan
Muhammad Arif Khan
1 Mohammad Ali Jinnah University, Islamabad-Pakistan

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The main purpose of this study is to examine the relationship between dividend policy and share price volatility in Pakistani stock market. The cross sectional regression is used to analyze the relationship of share price with dividend yield and payout ratio. The dividend yield and share prices are positively relate but payout ratio is negatively related. This study suggest that dividend policy is effect the share price volatility in Pakistan and this study also proposed that signaling effect is also relevant in determining the share price volatility.

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  18. Merton Miller,Kevin Rock (1985). Dividend Policy under Asymmetric Information.
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  20. S Ross,R Westerfeld,B Jordon (2003). Fundamentals of Corporate Finance.
  21. J Williams (1988). Efficient Signalling with Dividends, Investment, and Stock Repurchases.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Dr.Yasir Habib. 1970. \u201cDividend Policy and Share Price Volatility: Evidence from Pakistan\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 12 (GJMBR Volume 12 Issue B5): .

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GJMBR Volume 12 Issue B5
Pg. 79- 83
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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The main purpose of this study is to examine the relationship between dividend policy and share price volatility in Pakistani stock market. The cross sectional regression is used to analyze the relationship of share price with dividend yield and payout ratio. The dividend yield and share prices are positively relate but payout ratio is negatively related. This study suggest that dividend policy is effect the share price volatility in Pakistan and this study also proposed that signaling effect is also relevant in determining the share price volatility.

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Dividend Policy and Share Price Volatility: Evidence from Pakistan

Dr.Yasir Habib
Dr.Yasir Habib Mohammad Ali Jinnah University, Islamabad-Pakistan
Zernigah Irshad Kiani
Zernigah Irshad Kiani
Muhammad Arif Khan
Muhammad Arif Khan

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