Analysis of Institutional Factors Affecting Share Prices: The Case of National Stock Exchange

Nautiyal, Neeraj; Kavidayal, P. C.

doi:10.1177/0972150917713865

Cited by 19 publications

(27 citation statements)

References 12 publications

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“…The results of this study are not in line with research conducted by [1] which states that there is a positive influence between dividend per share on stock prices, declining dividend per share will reduce share prices. This research is supported by [30] showing that dividend per share has a negative influence on stock prices. The results showed an increase in dividend per share could reduce share prices compared to last year.…”

Section: Methodssupporting

confidence: 58%

The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

Usman¹,

Lestari²,

Sofyan³

2020

Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)

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The objective of the empirical study is to examine and analyze the impact of dividend policy on the share prices. The sample object used in this research are manufacturing companies listed on Indonesia Stock Exchange in the period 2014-2018. The independent variables are dividend per share, retention ratio, return on equity, dividend yield and earnings per share. The dependent variable is share prices of manufacture sector. The number of the samples in this research are 36 companies by using purposive sampling technique. Based on the results of panel data regression model indicates that dividend per share has a positive impact on share prices. Dividend yield has negative impact on share prices. Retention ratio, return on equity and earnings per share has insignificant impact on share prices. The results of this study are expected to be the reference for companies and investors to increase share prices.

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Section: Methodssupporting

confidence: 58%

The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

Usman¹,

Lestari²,

Sofyan³

2020

Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)

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“…Nautiyal and Kavidayal [26] studied empirical findings on the impact of institutional variables such as Earnings per share (EPS), Economic value added (EVA), dividend payout (DIVP) and dividend per share (DPS) on firm"s stock market price performance. The study confirmed that performance of companies fundamental ratios will be essential and immensely helpful to investors and analysts in assessing the better stocks that belong to different industry groups.…”

Section: Review Of Literaturementioning

confidence: 99%

Dividend Policy and Stock Price Volatility in the Bangladesh Capital Market: An Experimental Analysis

Hossin¹,

Ahmed²

2020

SJEF

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Commercial organizations in Bangladesh are experiencing rivalry among them because of economic struggle globally and attempting to remain competitive in these changeable economic surroundings. This paper intends to analyze the impact of dividend policy on the market price of stock in Bangladesh. The numbers of statistic community are 330 companies in Dhaka Stock Exchange. All 10 companies belong to the Food & Allied, Ceramics and Cement industry listed at DSE index are included as the sample for a phase from 2008 to 2017. In this paper, Fixed Effect Model along with Random Effect Model has been used to estimate outcomes. Both Models are exercised on panel data for explaining the association between dividend payments and share prices after adjusting several variables including Earnings per Share, logarithm value of Profit after Tax, Growth of Asset and Dividend Payout Ratio. The study also checked both the Models and found Random Effect Model is more significant than Fixed Effect Model. Afterward, this paper applied the multicollinearity test to determine is there any correlation among the variables and found no multicollinearity. This paper found a weak form market exists in Bangladesh and investors choose stock dividend more than the cash dividend.

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“…Besides, Adebisi and Lawal (2015) conducted a survey of literature and concluded that financial ratios have a significant impact on the share price. Nautiyal and Kavidayal (2018) analyzed that Earnings per share showed no significant relation, while dividend per share had a negative influence on the share price of companies listed on the National Stock Exchange. Haque and Faruquee (2013) supported that Earnings per share had no significant impact, in the same way, dividend per share, fixed asset to total asset, return on assets, and return on equity found to have no significant correlation between share price and these variables.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Globally, a large number of empirical pieces of evidence have shown that the fundamental factors have a significant effect on the stock price (Nautiyal & Kavidayal, 2018). Numerous studies have used these financial ratios, such as leverage ratio, return on equity, current ratio, debt to equity ratio, earning per share, return on asset, operating cash flows, net profit margin, firm size, and total assets turnover, to evaluate their impact on the share price (Araújo & Machado, 2018;Chasmi & Fadaee, 2016;Gautam, 2017;Khan et al, 2019;Medyawati & Yunanto, 2020;Milošević-Avdalović, 2018;Ramadianto & Fuadati, 2019;Vijayakumar, 2010).…”

Section: Introductionmentioning

confidence: 99%

The Impact of Fundamental Factors on the Share Price of Micro-Sized Nasdaq Listed Technology Companies

Rafaqat¹,

Rafaqat²,

Rafaqat³

2021

The Economics and Finance Letters

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The paper aims to examine the impact of fundamental factors on the share price of the companies in the sector of technology. Therefore, the study has selected eighteen micro-size technology companies listed in NASDAQ with a market capitalization between $50 million and $300 million. The data have been obtained from these companies' annual reports, NASDAQ, and SEC ranging from 2015 to 2019. The study evaluates the influence of firm size, earning per share, debt equity ratio, current ratio, operating cash flow ratio, return on equity, assets turnover ratio, return on assets, and the net profit margin on the share price of the selected companies. Moreover, the study uses multiple regression analysis, ANOVA, Pearson correlation, normality, multicollinearity, heteroscedasticity, autocorrelation test to find the effect of predictor variables on the share price. The results show that the operating cash flow ratio has a positive insignificant effect while debt equity ratio, net profit margin, and return on equity have a negative insignificant impact on the share price. However, return on assets, earning per share, and firm size have a positive significant relationship with share price, whereas the current ratio and the asset turnover ratio have a negative significant relationship with the share price. In conclusion, although the variables have a more negative insignificant effect than the positive insignificant impact on the share price, the variables have a more positive significant effect than a negative significant influence. Overall, the fundamental factors collectively have a significant impact on the share price of the experimented companies. Contribution/Originality:This study is one of the very few studies which have investigated the effect of the fundamental factors on the share price of the eighteen micro-size technology companies listed in NASDAQ over the period from 2015 to 2019.

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Analysis of Institutional Factors Affecting Share Prices: The Case of National Stock Exchange

Cited by 19 publications

References 12 publications

The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

The Effect of Dividend Policy on Share Price Manufacturing Companies in Indonesia

Dividend Policy and Stock Price Volatility in the Bangladesh Capital Market: An Experimental Analysis

The Impact of Fundamental Factors on the Share Price of Micro-Sized Nasdaq Listed Technology Companies

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