Adjusted R square shows that in the long term the independent variables impacted share price volatility by 9. For that the control variables mentioned earlier were added as independent variables. It shows the changes in the statistical mean and standard deviation for each variable in every yea followed by the regression and hypothesis results. The study hypothesized negative relationship between capital structure and operational firm performance. Our results do not show a positive relationship between family ownership and return on assets, return on equity or the market-to-book ratio. Second if the manager refuses to reduce dividend to invest in a positive net present value investment, as a concern of sending bad signals about the firm income.
Monitoring managers by hiring external auditors or increase the number of meetings between shareholders and managers to try to reduce information asymmetry is consider additional cost that should not be added. On the other hand Pay-out ratio had no significant relationship with share price volatility between 2005 and 2007. The figures of closing prices and number of shares outstanding represent the last day of trading at the end of the firm financial year. The results propose a significant negative relationship between firms share price volatility and its industry, but a positive relationship between firms Tobin Q and return on assets with its industry. They could continue to retain the profits within the company, or they could pay out the profits to the owners of the firm in the form of dividends.
Debt ratio had a positive significant relationship with Tobin Q at 10% after the financial crisis and in the long term, debt ratio seems to have an insignificant positive relationship with Tobin Q. Chapter 3 will discuss the methodology used in this research which include the variables used, the equations applied in the regression, the established hypothesis and the descriptive analysis for the variables. The debt ratio continued to increase in 2007 before it decreased slightly in 2008 and it increased again in 2009 to its peek before it decreased in 2010. Between the periods of 2005 to 2010, dividend yield Mean moved in a similar pattern. They found a positive relationship between corporate governance and dividend pay-out. The analysis of the equations 4 , 5 and 6 will represent more accurate understanding about the relationship between dividend policy and firm performance.
As one of the responses to the agony of capital shortage in the industrial sector, government initiated the deregulation of the capital market. If the t-static values are positive, the hypothesis will remain as specified. Many works of literature have measured the firm's performance in different manners; Khamees, et al. To avoid this limitation, the criteria were adjusted to include more companies. Data were sourced from both primary and secondary data and analysis was made from the Annual Reports and Accounts of First Bank of Nigeria Plc from 1997- 2006.
The findings indicated that dividend payout was a major factor affecting firm performance. Their results showed that utility sectors maintain different capital structure than firms in the retail sector. Board size represents the number of members, executive and none executive in the firm. H1 Alternative Hypothesis : There is a positive relationship between dividend pay-out and firms Tobin Q. All the time and cost spend to create a new airline company is enough to stop most of the new entrants from getting into this industry. In their working paper, Jiprapon et al. Does concentrated family ownership affect firm operating performance and value? I would like to thank my family who gave me the moral as well as the financial support I required during my studying.
Fama 1970 defined an efficient market as that which reflects all past information and reflects new information immediately. Regression Results witness that Dividend per Share andRetention Ratio havean insignificant relationship with Share Market Prices. Objective of the study is to see if there exists any relationship between dividend policy and stock prices. Dividend per share and dividend yield are used to measure dividend policy. The research results revealed that profitability, dividend policy and liquidity have positive and significant effect to firm value.
Figures are obtained from appendix 10. But there was no effect of debt ratio on the results after the crisis and in the long term, it continues to show a negative relationship with share price volatility after the financial crisis and on an average between 2005 and 2010. Dividends move in discrete jumps. See table 4 in appendix 1. Findings — The results show positive relationships between dividend payout ratios and profitability, cash flow, and tax. Petit 1972 argued that dividend pay-out always carry great information to the investors. In 2006 the mean increased by 51% before it decrease by 31% in 2007 as a reaction of the financial crisis.
Based on the findings of this paper dividend profitability has a negative and significant relationship with share price, while cash dividend amount has a positive and significant relationship with share price. The assumption that managers work for the best of shareholders have been questionable by new studies. Profit after Tax has insignificant relation to Stock Prices. We analyze a sample of 412 publicly listed Hong Kong firms during 1995—1998 in order to answer three questions. Various dividend theories relevance and irrelevance were reviewed alongside their assumptions and criticisms. Dividend policy can be measured by; changes in historical pay-out ratio, dividend per share, and dividend yield.