The relationship between dividend policy and stock price volatility : a Canadian study

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dc.contributor.advisor Dodds, J. C. (James Colin)
dc.coverage.spatial Canada
dc.creator Song, Xiaoping
dc.date.accessioned 2012-10-11T19:03:34Z
dc.date.available 2012-10-11T19:03:34Z
dc.date.issued 2012
dc.identifier.uri http://library2.smu.ca/xmlui/handle/01/24716
dc.description 1 online resource (iv, 35 leaves)
dc.description Includes abstract and appendices.
dc.description Includes bibliographical references (leaves 28-29).
dc.description.abstract The objective of this study is to explore the relationship between the stock price volatility and dividend policy (dividend yield and dividend payout ratio) for the Canadian stock market. According to the studies of Baskin (1989) and Allen and Rachim (1996), the multiple least squares regression model is applied in this paper. The sample of data is composed of 100 public firms which are listed on the Toronto Stock Exchange and paid dividends continuously from 2001 to 2011. The results indicate that the dividend yield and the dividend payout ratio both have significantly negative relationship with the stock price volatility. In addition, earnings volatility is positively related to the stock price volatility and it is a statistically significant relationship. As a result, managers can partly control the stocks’ risks and thus affect investors’ investment decisions through a firm’s dividend policies. en_CA
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dc.language.iso en en_CA
dc.title The relationship between dividend policy and stock price volatility : a Canadian study en_CA
dc.type Text en_CA
thesis.degree.name Master of Finance
thesis.degree.level Masters
thesis.degree.discipline Finance, Information Systems, & Management Science
thesis.degree.grantor Saint Mary's University (Halifax, N.S.)
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