Effect of Dividend Payment on Stock Prices of Commercial Banks in Nepal: Panel Approach

Bhattarai, Yuga Raj

doi:10.3126/ejdi.v21i1-2.19023

Cited by 3 publications

(4 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Thus, the firm's management should try to increase stock dividend rather than cash dividend to increase their stock market price and their value of the firm. The result of this study is compactable with the result of Khan (2012) and Bhattarai (2016). They found that stock dividend has significant positive impact on stock market price.…”

Section: Resultssupporting

confidence: 81%

Effect of Dividend on Stock Market Price: A Panel Data Approach

Shrestha

2020

Management Dynamics

View full text Add to dashboard Cite

Dividend policy is major concern for investor, managers and policy makers. Proper dividend policy helps to achieve the wealth maximization goal of the firm. This study has examined the impact of dividend on stock market price of Nepalese enterprises. For this purpose 33 dividend paying companies listed on NEPSE has been selected as sample. Likewise, this study used unbalance panel data for the period of 2000/01 to 2018/19. Breusch and Pagan Lagrangian multiplier test concluded that Pooled regression model is not appropriate and Hausman test concluded that Random Effect model is not appropriate for the data used in this study. Thus, this study adopted Fixed Effect model to analyze the impact of dividend on stock market price. This study concluded that there is significant impact of dividend on stock market price of Nepalese enterprises after controlling return on equity, earnings per share and return on equity. Finally, this study concluded that cash dividend has significant negative and stock dividend has significant positive impact on stock market price of Nepalese enterprises.

show abstract

Section: Resultssupporting

confidence: 81%

Effect of Dividend on Stock Market Price: A Panel Data Approach

Shrestha

2020

Management Dynamics

View full text Add to dashboard Cite

show abstract

“…This implies that the optimal dividend payout is the one that maximizes the total value of the company. The obtained result is familiar to the results by Benaruzi (1997), Bhattarai (2016), Singh and Tandon Full text can be downloaded https://www.nepjol.info/index.php/craiaj & http://www.craiaj.info/ (2019) and contradicts with that of Ali and Chowdhury (2010)which conveys that dividend announcement does not impact on share the price of banks.…”

Section: Discussionmentioning

confidence: 51%

“…To make secure and lucrative investments, investors must thoroughly review the available data on companies. Bhattarai (2016) conducted a causal comparative research study to examine the effect of dividend payment on the stock prices of banks in Nepal. According to the study, it has been found that dividend per share has a noteworthy and optimistic influence on the share price of commercial banks in Nepal.…”

Section: Nepali Studiesmentioning

confidence: 99%

See 1 more Smart Citation

The Impact of Dividend Policy on Stock Prices: Evidence from Nepalese Banking Sector

Gurung,

Chapagain,

Baral

et al. 2023

Contemp. Res.

View full text Add to dashboard Cite

The study examined the impact of dividend policy on market price of share in banking sector of Nepal. Out of 27 commercial banks, 10 banks have been selected under convenience sampling with ten years data for the period 2068/69 to 2077/78 were taken for the analysis. Panel data regression models (random effect model) has been utilized to analyze the data as the Hausman test suggest the random effect model is the most appropriate for describing the relationship among the given variables. The result indicates that earning per share, dividend per share, price-earnings ratio and retained earnings have a positive relationship on stock prices of commercial banks. The study concluded that dividend payments lead to a rise in the market price of a stock. Hence, it can be inferred from the outcome of the random effect regression model that it is consistent with the applicable methods related to dividend policy, indicating that there is a noteworthy impact of dividend policy on the stock price of companies. The findings of this study will contribute to the existing literature on dividend policy and market price of share, especially in the context of Nepal. The study will also provide important implications for investors, policymakers, and companies in making decisions regarding dividend rules and its impact on the stock prices.

show abstract

Effect of Dividend Policy on Share Price Movement: Focusing on Companies Listed on the Nigerian Stock Exchange Market

Olorunmade

Ayobami

2022

FMIR

View full text Add to dashboard Cite

This study examined the relationship between dividend policy and share price movements with evidence from firms listed on the Nigerian Stock Exchange. A systemization literary approach for data analysis was panel regression analysis and Generalized Methods of Moments (GMM). Panel data covering the year 2011-2020 were obtained from the financial statements of twenty firms listed on the Nigerian stock exchange. It was discovered that dividend yield has negative relationship with share price movement. It was discovered that Dividend yield has negative and significant relationship with Share price. It was revealed thatfirms’ size has positive and significant relationship with stock price volatility. The study therefore recommends that the stakeholders of quoted firms must make sure that percentage of earnings disbursed as dividends to shareholders have good influence on the value of the company’s common stock at the stock market on a continuous base. It was recommended that Stake holders should ensure that the ratio of a quoted company’s annual dividend compared to its share price have good influence on the value of the company’s common stock at the stock market on a frequent base. Also, the stake holders of quoted firms must map out strategies of increasing their sizes in terms of asset, branch creation etc., this will increase patronage and profit of quoted firms which can have good influence on the value of the company’s common stock at the stock market.

show abstract

Effect of Dividend Payment on Stock Prices of Commercial Banks in Nepal: Panel Approach

Abstract: Abstract

Cited by 3 publications

References 15 publications

Effect of Dividend on Stock Market Price: A Panel Data Approach

Effect of Dividend on Stock Market Price: A Panel Data Approach

The Impact of Dividend Policy on Stock Prices: Evidence from Nepalese Banking Sector

Effect of Dividend Policy on Share Price Movement: Focusing on Companies Listed on the Nigerian Stock Exchange Market

Contact Info

Product

Resources

About