The Role of Dividend Policy on Stock Price Volatility: An analysis and Evidence from Pakistan
DOI:
https://doi.org/10.56976/rjsi.v5i2.106Abstract
This study looked at how dividend policies affected the partial in volatility price of firms that are registered on the Pakistan Stock Exchange (PSX). As a result, this research collected information from 15 organizations over 15 years, from 2004 to 2019, for three variables, using a second technique and a quantitative study design. The study's variables included the volatility in terms of price share as the left handed variables and on the right side the ratio of dividend payout, yield of dividend, and DPR. In E-Views software we employed the analysis of regression and correlation techniques. As this paper concluded, the overall impact of policy of dividend with regard to share price volatility was considerable. These factors were important on their own, with DY influencing price volatility in positive impact and DPR having a negative effect. Numerous earlier researches carried out in Pakistan and other places provided additional support for the findings.
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