Hussainey, Khaled and Mgbame, C O and Chijoke-Mgbame, A M (2011) Dividend policy and share price volatility: UK evidence. Journal of Risk Finance, 12 (1). pp. 57-68.Full text not available from this repository.
Purpose – The purpose of this paper is to examine the relation between dividend policy and share price changes in the UK stock market. Design/methodology/approach – Multiple regression analyses are used to explore the association between share price changes and both dividend yield and dividend payout ratio. Findings – A positive relation is found between dividend yield and stock price changes, and a negative relation between dividend payout ratio and stock price changes. In addition, it is shown that a firm's growth rate, debt level, size and earnings explain stock price changes. Practical implications – The paper supports the fact that dividend policy is relevant in determining share price changes for a sample of firms listed in the London Stock Exchange. Originality/value – To the best of the authors' knowledge, this paper is the first to show that corporate dividend policy is a key driver of stock price changes in the UK.
|Uncontrolled Keywords:||United Kingdom, Dividends, Business policy, Share prices|
|Subjects:||H Social Sciences > HG Finance
H Social Sciences > HG Finance > HG4501 Investment, capital formation, speculation
|Divisions:||Schools and Research Institutes > Business School > Accounting and Finance|
|Research Priority Areas:||Applied Business Research|
|Depositing User:||Ineke Tijsma|
|Date Deposited:||31 Mar 2015 13:25|
|Last Modified:||22 Oct 2015 15:48|