The impact of dividend policy on stock price volatility evidence from: Malaysia shariah compliant securities / Nur Afifah Yazid

Yazid, Nur Afifah (2018) The impact of dividend policy on stock price volatility evidence from: Malaysia shariah compliant securities / Nur Afifah Yazid. Degree thesis, UiTM Cawangan Johor.

Abstract

This research paper generally aims to examine the impact of dividend policy on stock price volatility in Malaysian Shariah-compliant securities. The impact of dividend policy on stock price volatility represents by dividend yield and dividend pay-out ratio while firm's growth, size, debt and earnings volatility will serve as control variables in this study. Furthermore, this study employed secondary data that will be collected from Thomson Reuters Data Stream. A sample of 794 Shariah- compliant companies that was listed on Bursa Malaysia will be used as sample size from year 2008 until 2010. This study used panel data since it's comprised of time series and cross-sectional data. To analyse the data, multiple regression model and E-views will be used in this study. This research study finds that dividend policy has negative and significant impact on stock price volatility. This suggest that an increase in dividend policy especially dividend pay-out ratio will reduce stock price volatility. Meanwhile, control variables such as firm's size and leverage has influences on stock price volatility while earnings volatility and firm's growth signal insignificant relationship towards stock price volatility. In summary, management and policy maker should increase their dividend payment to reduce price volatility.

Metadata

Item Type: Thesis (Degree)
Creators:
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Email / ID Num.
Yazid, Nur Afifah
2016326613
Contributors:
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Thesis advisor
Ismail, Dr. Norashikin
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Dividends. Stock dividends. Dividend reinvestment
H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Dividends. Stock dividends. Dividend reinvestment > Malaysia
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock price indexes. Stock quotations
Divisions: Universiti Teknologi MARA, Johor > Segamat Campus > Faculty of Business and Management
Programme: Bachelor of Business Adminitration (HONS) Investment Management
Keywords: Dividend policy; Share price volatility; Shariah compliant
Date: 2018
URI: https://ir.uitm.edu.my/id/eprint/62022
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