Dividend Policy and Share Price Volatility: Malaysia Evidence

The purpose of this study is to examine the relation between dividend policy and share price volatility on firms listed on the Bursa Malaysia Main Board. This study covers a period from 2001 until 2010 with 841 firms included overall sectors in Malaysia. The objectives of this are firstly to explore...

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Main Author:	Nor Anis, Shafai
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/3144/1/NOR_ANIS_SHAFAI.pdf https://etd.uum.edu.my/3144/3/NOR_ANIS_SHAFAI.pdf
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id	my-uum-etd.3144
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ahmad, Nor Hayati
topic	HG Finance
spellingShingle	HG Finance Nor Anis, Shafai Dividend Policy and Share Price Volatility: Malaysia Evidence
description	The purpose of this study is to examine the relation between dividend policy and share price volatility on firms listed on the Bursa Malaysia Main Board. This study covers a period from 2001 until 2010 with 841 firms included overall sectors in Malaysia. The objectives of this are firstly to explore the dividend trends for the large sample of Malaysian companies that traded on Bursa Malaysia; secondly to examine the relation between dividend policy and share price changes in the Malaysia stock market and the third objective is to identify the influence of dividend payout, dividend yield, size, earning volatility, long-term debt and growth in assets on share price changes in the long run. All the results are tested at 0.05 significant levels. To achieve the objectives, multivariate regression is used to test the hypothesis. From the analysis, the result suggest that dividend yield, dividend payout, size, earning volatility, long-term debt on all firms sample have significant impact on the dividend policy and share price volatility which the findings are consistent with the earlier researcher such Baskin (1989) and Al-Malkawi (2007). On the other hand, growth in asset is insignificant with the share price volatility.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Nor Anis, Shafai
author_facet	Nor Anis, Shafai
author_sort	Nor Anis, Shafai
title	Dividend Policy and Share Price Volatility: Malaysia Evidence
title_short	Dividend Policy and Share Price Volatility: Malaysia Evidence
title_full	Dividend Policy and Share Price Volatility: Malaysia Evidence
title_fullStr	Dividend Policy and Share Price Volatility: Malaysia Evidence
title_full_unstemmed	Dividend Policy and Share Price Volatility: Malaysia Evidence
title_sort	dividend policy and share price volatility: malaysia evidence
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2012
url	https://etd.uum.edu.my/3144/1/NOR_ANIS_SHAFAI.pdf https://etd.uum.edu.my/3144/3/NOR_ANIS_SHAFAI.pdf
_version_	1747827508306247680
spelling	my-uum-etd.31442016-04-20T04:14:22Z Dividend Policy and Share Price Volatility: Malaysia Evidence 2012-01 Nor Anis, Shafai Ahmad, Nor Hayati College of Business (COB) College of Business HG Finance The purpose of this study is to examine the relation between dividend policy and share price volatility on firms listed on the Bursa Malaysia Main Board. This study covers a period from 2001 until 2010 with 841 firms included overall sectors in Malaysia. The objectives of this are firstly to explore the dividend trends for the large sample of Malaysian companies that traded on Bursa Malaysia; secondly to examine the relation between dividend policy and share price changes in the Malaysia stock market and the third objective is to identify the influence of dividend payout, dividend yield, size, earning volatility, long-term debt and growth in assets on share price changes in the long run. All the results are tested at 0.05 significant levels. To achieve the objectives, multivariate regression is used to test the hypothesis. From the analysis, the result suggest that dividend yield, dividend payout, size, earning volatility, long-term debt on all firms sample have significant impact on the dividend policy and share price volatility which the findings are consistent with the earlier researcher such Baskin (1989) and Al-Malkawi (2007). On the other hand, growth in asset is insignificant with the share price volatility. 2012-01 Thesis https://etd.uum.edu.my/3144/ https://etd.uum.edu.my/3144/1/NOR_ANIS_SHAFAI.pdf text eng validuser https://etd.uum.edu.my/3144/3/NOR_ANIS_SHAFAI.pdf text eng public masters masters Universiti Utara Malaysia Adaoglu,Cahit (2000),“Instability in the Dividend Policy of the Istanbul Stock Exchange (ISE) Corporations: Evidence from an Emerging Market”, Emerging Markets Review, 1(3), pp.252-270 Allen,D.E. and Rachim,V.S. 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Hafeez Ahmed and Attiya Javid (2009),“Dynamics and Determinants of Dividend Policy in Pakistan (Evidence from Karachi Stock Exchange Non-Financial Listed Firms)”, International Research Journal of Finance and Economics, ISSN 1450-2887 Issue 25 Hussainey,Oscar Mgbame and Chijoke–Mgbame (2011),“Dividend policy and share price volatility : UK evidence”,The Journal of Risk Finance, Vol.12 No.1,pp.57-68. I.M.Pandey (2003),“Corporate dividend policy and behaviour :The Malaysian evidence”,Asian Academy of Management Journal, Vol.8,No.1,pp.17-32 Isa Mansor Md. (1992),“Dividend Policies and Practices of Listed Malaysian Companies” Securities Industry Review 18(1):pp.53–64. Jensen and Meckling (1976),“Theory of the firm: Managerial Behaviour, Agency Cost and Ownership Structure”, Journal of Finance Economic, Vol.3,No.4,pp.134-152 Kester,Georgre W. & Isa Mansor Md. (1996),“Dividend Policy in Malaysia: A Comparative Analysis”,Malaysian Journal of Economic Studies 33(1)(June):pp.33–48. Lintner,J. 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Upananda Pani (2008),“Dividend Policy and Stock Price Behaviour in Indian Corporate Sector: A Panel Data Approach” ,The journal of management, pp.76 Rashid,A. and Rehman,AZMA (2008),“Dividend Policy and Stock Price Volatility: Evidence from Bangladesh”,Journal of Applied Business and Economics, Vol.8(4),pp.71-80. Santhi Appannan and Lee Wei Sim (2011),“A study on leading determinants of dividend policy in Malaysia listed companies for food industry under consumer product sector”, The journal of business and economic research. Shamsher Mohamad and Annuar Md Nassir (1993),“Factor associated with stock price volatility and evaluation of Gordon’s share Valuation model on the Kuala Lumpur Stock Exchange”,Pertanika J. Soc. Sci & Hum, 1(2):179-186 Shevlin,T. (1982),“Australian Corporate Dividend Policy: Empirical Analysis”,Accounting and Finance, pp.1–22. Watts,Ross (1973),“The Information Content of Dividends”, Journal of Business 46,pp.191-211.

Dividend Policy and Share Price Volatility: Malaysia Evidence

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