Summary of the Variables


Depended Variable

Share price volatility

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Depended variables

Dividend payout Ratio

Dividend Yield

Control Variables

Firm Size

Asset growth

Long term liability



the purpose of determining the suggested
relationship between the Independent variable and the Dependent variable
following hypothesis had been developed by studying the past relevant
literature. Based on the above mentioned
conceptual model the following hypotheses are made.


– There is a positive relationship between dividend Yield Share and price

– There is a negative relationship between dividend Payout ratio and Share
price volatility

– There is a positive relationship between firm size and Share price volatility

– There is a positive relationship between Assets growth and Share price

– There is a positive relationship between long-term
debt and Share price volatility




study is used Descriptive Analysis and Correlation analysis to find the
association between dividend policy and share price. And also Multiple
regression analysis used to examine the relationship between dividend policy
and share prices. the analytical process is done
by using Excel and IBM SPSS.



here the researcher define the basic structures and simple summery about the
sample with simple graphical analysis of the data set.



is a statistical evaluation method that used to find strength of a relationship
between two variables (Variable should be numerical). In simply correlation
analysis is used to identify that whether the independent variables are
correlated or not. In this study Pearson’s correlation is used to measure the
correlation among variables and it’s range between -1 and +1. +1 mean there is
a strong positive correlation and -1 indicates strong negative correlation.
Hence 0 value (Zero) indicates no correlation.


regression analysis

is a set of statistical analysis process used to find the relationship between
variables. It included complex modeling and analyzing practices for variables.
When considered depended and independent variables. so regression analysis is
more important to identify the relationship between dividend policy and share
price volatility. Mainly regression analysis can be divided into parts those are simple regression analysis
and multiple regression analysis. In this study,
the researcher uses multiple linear regression models
which mean there is more than one
variable. Furthermore, this research is mainly based on panel data, therefore,
the researcher should consider that which model is most suitable. There are
three models available in panel regression those are Fixed effect, Random
Effect and pool method. so regression analysis is the main analyzing tool in
this research. All the conclusions and discussions based on this analyzing tool



According to previous and literature and studies following econometrics
model is developed. There are two independent variables and one depended



Definitions of
short names

SP       =
Share price volatility

DY      =
Dividend Yield

DP       =
Dividend Payout Ratio

            ?          = Error


But the researcher considers three control variables to find the
relationship between dividend policy and its impact on share price. Those are
firm size, Assets growth and long-term debt. After considering these control variables
following econometric model is developed.



Definitions of
short names

SP       =
Share price volatility

DY      =
Dividend Yield

DP       =
Dividend Payout Ratio

FS       =
Firm Size

LD      =
Long-term debt

GA      =
Growth in Assets

            ?          = Error term



The researcher investigates only 40 of
companies’ sample, therefore, it is a small part of the population. The second
issue is all the companies do not pay a dividend
the result of this some companies automatically rejected from the sample which
the researcher considers.



This chapter included variable of the
research, measurement, and indicators of
the research, and methodology used to conduct the research. And also in this
chapter explains about population and sample of the research, what are the data
analyzing tools, data collecting methods, conceptual framework and finally
limitation of the research.

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