The impact of dividend policy on share price volatility in the Philippine Stock Exchange, Singapore Exchange, Bursa Malaysia, Indonesia Stock Exchange, and Stock Exchange of Thailand from 2007-2012

• Main Authors: Fernandez, Ma. Kristina, Tiqui, Mary Anne, Villaroman, Jan Beatrice, Yumul, Jeremy
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Stock exchanges; Stocks > Prices; Dividends; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/9028
• Institution: De La Salle University

The purpose of this study was to examine the relationship between dividend policy and share price volatility in the Philippine Stock Exchange, Singapore Exchange, Bursa Malaysia, Indonesia Stock Exchange, and Stock Exchange of Thailand from 2007-2012. For this purpose, a sample of 200 companies listed in the stock exchanges from the five ASEAN countries were selected and a correlation analyis and multiple regression was appllied to dividend policy, i.e. dividend yield and dividend payout, as well as controlled variables-- size, earnings volatility, debt and growth. The empirical results of this study showed a significant negative relationship between dividend payout and share price volatility for Malaysia and Singapore. Furthermore, a significant negative relationship between size and share price volatility was found for Malaysia, earnings volatility for Singapore, and a significant positive relationship between growth and share price volatility was found for Thailand.