The relationship of dividend policy and share price volatility: manufacturing and construction listed companies / Fetty Elenna Mudi

This research is carried out an objective to find out the relationship of dividend payout ratio on share price volatility focusing on Manufacturing and Construction listed companies in Malaysia. Dividend is known as part of the firm’s return or earnings that distributed among shareholders. Numerous of studies and literature that related with the relationship of dividend policy and share price volatility has been conducted. Lot of studies has been conducted in most of developed country but only a few from the emerging country, like Malaysia. In this paper, the dividend policy is measured using dividend payout ratio and dividend yield. Leverage was added as expanded variables in the study. The finding shows that there is positive relationship and significant between the leverage towards share price volatility while dividend yields has a significant negative relationship. Meanwhile, dividend payout ratio has insignificant positive relationship towards share price volatility.