DIVIDEND POLICY DECISIONS AND SHARE PRICES RELATIONSHIP

Finance & Accounting Research Journal

View Publication Info
 
 
Field Value
 
Title DIVIDEND POLICY DECISIONS AND SHARE PRICES RELATIONSHIP
 
Creator Tiwari, Shamik
Pal, Debajyoti
 
Subject Share Prices
Dividend
Policy
Company
Stock Exchange
Indonesia
 
Description Dividend policy is about a company’s decision related to the retention of profit and distribution of profit. In this study, the objective is to understand the effects of dividend policy on share prices for the selected companies in the Indonesian stock exchange. The findings of the study are that higher dividend yield stocks along with higher pre-tax risk adjusted returns give investor some compensation for the disadvantageous position of tax return. The findings are matching with the Brennan’s model (Brennan, 1970). The findings of the study also pointed out that increase in a company’s stock trading volume influence the share prices and investors who wanted current investment income owned shares in high dividend payout firms. Free cash flow is causing conflict between management and shareholders and this is another important finding of the study. Overall, results shows that a company’s dividend policy influence its share prices.
 
Publisher Fair East Publishers
 
Date 2020-06-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://fepbl.com/index.php/farj/article/view/106
 
Source Finance & Accounting Research Journal; Vol. 2 No. 2 (2020); 76-81
2708-6348
2708-633X
 
Language eng
 
Relation http://fepbl.com/index.php/farj/article/view/106/278
 
Rights Copyright (c) 2020 Shamik Tiwari, Debajyoti Pal
https://creativecommons.org/licenses/by-nc/4.0
 

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