چکیده:
This paper aims to determine the impact of dividend policy on stock price volatility by taking firms listed on Tehran stock exchange. A sample of 68 listed companies from Tehran stock exchange is examined for a period from 2001 to 2012. The estimation is based on cross-sectional ordinary least square regression analysis to find the relationship between share price volatility and dividend policy measures (dividend payout ratio and dividend yield). Control variables taken by the study are: size, earning volatility, debt and growth. Results show, there is a significant negative relationship between share price volatility and two main dividend policy measures: payout ratio and dividend yield. It has also identified that there is a positive relationship between price volatility and size and also debt of firms. The other finding of this study is that there is no relationship between stock price volatility and earning volatility and also growth of the firms.
خلاصه ماشینی:
The estimation is based on cross-sectional ordinary least square regression analysis to find the relationshipbetween share price volatility and dividend policy measures (dividend payout ratio and dividend yield).
Results show, there is a significant negative relationship between share price volatility and two main dividend policy measures: payout ratio and dividend yield.
The other finding of this study is that there is no relationship between stock price volatility and earning volatility and also growth of the firms Keywords: Dividend policy, Dividend yield, Dividend payout, Share price volatility 27 1- Introduction Stock price volatility means ups and downs in the stock prices during a time period [12].
S. firms over a period of 1967 to 1986 and he reported a significant negative correlation between dividend yield and stock price volatility[3].
The regression model which primarily links volatility of share price to dividend yield and payout ratio has been expanded by the control variables.
These control variables include firm’s size, earning volatility, debt and growth and have impact on both dividend policy and stock price volatility [3].
2 we have the regression below: Pvol= a1+β2 Payout+β3 Size+ β4Evol+β5 Debt+ β6 Growth+ e (2) Where; Pvol= Stock price volatility Payout= Payout rate Size= Size of the firm Evol= Earnings volatility Debt= Long term debt e= Error term At last we can conclude from the secondary hypothesis about the main hypothesis and also we regress price volatility on dividend payout and dividend yield with control variables to conclude about the correct regression model for the study.