The Effect of Dividend Policy on Stock Price: Evidence from the Indian Market

Singh, Narinder Pal; Tandon, Aakarsh

doi:10.1177/2319510x19825729

Cited by 25 publications

(32 citation statements)

References 39 publications

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“…The negative relationship between stock return and dividend policy is in line with Dang et al ( 2019) and Singh and Tandon (2019). This finding is in contrast with the bird in the hand theory.…”

Section: Resultssupporting

confidence: 82%

The Influence of Investment, Debt, and Dividend Policies on the Stock Return of Shariah Compliant Companies in Indonesia (ISSI)

Haron

Siraj

2022

GReviewIEB

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This study aims to analyze the impact of investment, debt, and dividend policies on the stock return of the companies listed in the Indonesia Sharia Stock Index (ISSI) from 2016 up to 2020. The sample stocks used in this study covers all the shariah compliant companies that were consistently listed during the study period, involving 158 companies with 790 observations. The proxies of stock return are annualized stock return, Sharpe ratio, and Treynor ratio. Investment policy is represented by price earnings ratio (PER), debt policy by debt to asset ratio (DAR), and dividend policy by dividend yield (DY). The generalized method of moment (GMM) is a regression technique that is employed in this study. The regression model should pass the AR(2) and Hansen tests to avoid autocorrelation and validity issues. This study provides important evidence that investment policy positively affects stock return (annualized stock return and Treynor ratio). In contrast, investment policy negatively affects the Sharpe ratio. Furthermore, there is a significant negative relationship between debt policy and the Sharpe ratio. Lastly, dividend policy is reported to significantly influence stock return, positive with Treynor ratio, while negative with stock return (annualized). The study relates its findings to the relevant theories involving the trade-off, signalling, and the bird in the hand theories.

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Section: Resultssupporting

confidence: 82%

The Influence of Investment, Debt, and Dividend Policies on the Stock Return of Shariah Compliant Companies in Indonesia (ISSI)

Haron

Siraj

2022

GReviewIEB

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“…A decrease in dividend yield can increase stock prices. Companies reduce the distribution of dividend yields to investors and allocate profits for investment and get more profits in the future and can share more profits with investors in the future, some investors like the distribution of investors in the future thereby increasing demand for company shares and increasing share prices [21] states that there is a negative influence between dividend yield on stock prices. Increased company earnings will be allocated for high debt repayments so that future expenditure decreases as interest from these loans and can be an investor analysis because lower costs can increase earnings in the future and attract many investors to pressure stock prices to increase.…”

Section: Methodsmentioning

confidence: 99%

“…The company is effectively needed to manage policies in attracting potential investors and increase the trading of company shares in the capital market [20]. According to [21], the retention ratio is used as a dividend policy in choosing company decisions between dividend distribution to investors or maintaining profits in the company. The company must maintain its profit if the return on investment to investors exceeds the cost of capital, and vice versa.…”

Section: Retention Ratiomentioning

confidence: 99%

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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“…In Indian capital market, Singh et al (2019) examined the influence of dividend policy on stock price volatility. They took samples of 50 companies registered in National Stock Exchange, India in 2008-2017.…”

Section: Influence Of Dividend Policy and Some Control Variables On Smentioning

confidence: 99%

Influence of dividend policy on sharia stock price volatility

Irton¹

2020

IJRBS

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The main object of this research is to examine whether dividend policy in the form of dividend payout ratio and dividend yield influences the volatility of sharia stock price in the Indonesian Stock Exchange. This research uses the quantitative method by using the secondary data collected from the published Indonesian Stock Exchange. The sample in this research is 106 companies registered in the Indonesian Sharia Stock Index (ISSI) in 2016-2018. The dependent variable in this research is stock price volatility while the independent variables are dividend payout ratio, dividend yield, and data of earnings volatility, debt, and size that are collected and processed from the company financial report. Multiplied regression analysis is used for correlation test and hypothesis test using the SPSS software program version 15.0. The result of the research shows a shred of evidence that dividend per share and dividend payout ratio have no influence on the stock price volatility. The result of research can help the investors to select the sharia shares, and for companies, this research is useful to determine the dividend policy

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The Effect of Dividend Policy on Stock Price: Evidence from the Indian Market

Cited by 25 publications

References 39 publications

The Influence of Investment, Debt, and Dividend Policies on the Stock Return of Shariah Compliant Companies in Indonesia (ISSI)

The Influence of Investment, Debt, and Dividend Policies on the Stock Return of Shariah Compliant Companies in Indonesia (ISSI)

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

Influence of dividend policy on sharia stock price volatility

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