Dividend Policy and Share Price Volatility: Malaysia Evidence

• Main Author: Nor Anis, Shafai
• Format: Thesis
• Language: English; English
• Published: 2012
• Subjects: HG Finance
• Online Access: http://etd.uum.edu.my/3144/1/NOR_ANIS_SHAFAI.pdf; http://etd.uum.edu.my/3144/3/NOR_ANIS_SHAFAI.pdf; http://etd.uum.edu.my/3144/
• Institution: Universiti Utara Malaysia

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.