Communication of dividend decisions and banks' share price volatility

Hasan, Md. Masud, Hasan, Md. Rajibul, Aziz, Emdad and Rahman, Mizan (2015) Communication of dividend decisions and banks' share price volatility. Review of Enterprise and Management Studies, 2 (1). pp. 45-61.

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Item Type:Article
Item Status:Live Archive

Abstract

The objective of the study is to identify the decision effect of dividends on share price volatility. Seven banks listed with London Stock Exchange (LSE) are examined for the time period of five years (2006-2010). These data are analysed using different statistical test such as regression analysis and correlation matrix with the use of SPSS. The control variables in the study were price volatility, dividend yield, dividend payout, size, return on assets, assets growth and debt. The findings of the study indicate that dividend decisions and its communication affect the volatility of share price of the sample banks chosen. It also indicates that dividend yield and dividend payment have negative relationship with the volatility of share price. However, this relationship being insignificant, other issues like financial crisis might also affect the share price volatility during the time period chosen for the study. The study also finds that size has a negative relationship with the volatility of share price.

Keywords:Dividend decisions, Share price volatility, bmjgoldcheck, NotOAChecked
Subjects:N Business and Administrative studies > N100 Business studies
N Business and Administrative studies > N340 Financial Management
N Business and Administrative studies > N211 Strategic Management
N Business and Administrative studies > N200 Management studies
Divisions:Lincoln International Business School
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ID Code:14842
Deposited On:09 Sep 2014 11:57

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