IMPACT OF COMPANY DIVIDEND POLICY ON STOCK PRICE VOLATILITY IN FOOD AND BEVERAGE INDUSTRY IN MALAYSIA

Authors

  • Norlina Kadri
  • Raul Stephen Hardin

DOI:

https://doi.org/10.33736/uraf.6391.2023

Keywords:

Malaysia, Financial performance, Market behavior, Stock price volatility, Food and beverage industry.

Abstract

Investor expectations are greatly shaped by a company's dividend policy, which also has an impact on stock price volatility. This study attempts to investigate how corporate dividend policies affect stock price volatility in Malaysia's food and beverage sector. This research aims to provide light on the dynamics of dividend decisions and their impacts on market behavior by examining the relationship between dividend policy and stock price volatility. Utilizing secondary data gathered from publically accessible sources, including financial statements and stock market data, the study uses a quantitative research design. For the analysis, a sample of 30 food and beverage companies that are listed on the Bursa Malaysia stock exchange is chosen and 16 years period (2005-2020) been analyzed. To allow for a comparison examination, the sample contains both dividend-paying and non-dividend-paying enterprises. Regression analysis and descriptive analysis are two statistical methods that are used to analyze the link between dividend policy and stock price volatility. To verify the validity of the results, additional variables such as firm financial performance, market conditions, and industryspecific characteristics are taken into account.The results of this study will add to the body of knowledge by presenting empirical data on the effect of corporate dividend policies on stock price volatility in Malaysia's food and beverage sector. The findings will improve knowledge of the relevance of dividend policy choices and their possible impacts on stock market dynamics among investors, policymakers, and market players.

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Published

2023-12-26

How to Cite

Kadri, N., & Stephen Hardin , R. . (2023). IMPACT OF COMPANY DIVIDEND POLICY ON STOCK PRICE VOLATILITY IN FOOD AND BEVERAGE INDUSTRY IN MALAYSIA . UNIMAS Review of Accounting and Finance, 7(1), 127–140. https://doi.org/10.33736/uraf.6391.2023

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