Dividend policies and stock volatility-empirical evidence from Middle Eastern stock markets

IF 3.6 Q1 BUSINESS, FINANCE Review of Accounting and Finance Pub Date : 2023-08-10 DOI:10.1108/raf-03-2023-0069
A. Syed, H. Bawazir, Ibrahim Tawfeeq AlSidrah
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Abstract

Purpose The study aims to explore the relation between dividend policy of any company and its stock volatility. Design/methodology/approach Companies listed on six GCC stock markets are used in the analysis and the data ranges from 2006 to 2020. Fixed effect and random effect panel data analysis is used to explore the association between stock volatility and the dividend policies. Findings A significant negative relation is observed between dividend payout and stock volatility. Also, significant negative relation between stock volatility and equity is found, whereas insignificant positive relation is observed between asset growth and stock volatility. Research limitations/implications The data of all listed companies on six GCC markets were not available. Practical implications The question of raising dividend or maintaining at the current level is of utmost importance for the managers of any company before making any investment decisions. Also, the investors look at the dividend announcements as a sort of signal about the future prospect of the company. A stable or fluctuating dividends may be preferred by the investors that ultimately changes the stock price of any company. Social implications The relationship between dividend policy and the volatility of stock price is explored for emerging GCC markets which is the major significance of this paper which will have many social impacts on various stakeholders of any company including investors, regulators and employees, etc. Originality/value To the best of the authors’ knowledge, no study for GCC markets is done to establish a relation between stock volatility and the dividend policies which is needed by the academicians to further explore the behavior of these markets.
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股息政策与股票波动——来自中东股市的经验证据
目的本研究旨在探讨任何公司的股利政策与其股票波动之间的关系。设计/方法/方法分析中使用了六个海湾合作委员会股票市场上市的公司,数据范围为2006年至2020年。采用固定效应和随机效应面板数据分析,探讨股票波动率与股利政策之间的关系。发现股利支付与股票波动呈显著负相关。股票波动率与权益呈显著负相关,而资产增长与股票波动率呈不显著正相关。研究的局限性/意义6个海湾合作委员会市场的所有上市公司的数据无法获得。实际意义对任何公司的经理来说,在作出任何投资决策之前,提高股息或维持当前水平的问题是最重要的。此外,投资者将股息公告视为公司未来前景的一种信号。投资者可能更喜欢稳定或波动的股息,这最终会改变任何公司的股价。社会影响本文探讨了新兴海湾合作委员会市场的股息政策与股价波动之间的关系,这是本文的主要意义,它将对任何公司的各种利益相关者,包括投资者,监管机构和员工等产生许多社会影响。没有针对海湾合作委员会市场的研究来建立股票波动与股利政策之间的关系,这是学者们进一步探讨这些市场行为所需要的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
4.30
自引率
0.00%
发文量
18
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