Dividend Policy and Stock Price Volatility in the U.S. Equity Capital Markets.
Document Type
Article
Publication Date
2-2013
Abstract
What factors affect the volatility of a stock’s price over time? What specific financial factors lead a stock to be more volatile than others? This study attempts to identify the impact of certain financial variables on the volatility of a stock’s price overtime by analyzing the financial data of over 500 publicly traded firms found through the Value Line Investment Survey database using Ordinary Least Squares (OLS) Regression. The study tests the effects of financial variables (deemed appropriate by the finance literature) on stock price volatility (as measured by the stock’s standard deviation) for a sample of firms screened from the Value Line Investment Survey database. By analyzing these selected financial factors on a large sample of firms, this study will also identify those financial variables that have proven historically significant in explaining stock price volatility. The study results add to the body of dividend policy literature by either supporting or rejecting the theories advanced in the literature.
Recommended Citation
Profilet, K., Bacon, F. (2013). Dividend Policy and Stock Price Volatility in the U.S. Equity Capital Markets. Journal of Business and Behavioral Sciences/ASBBS, 25(2), 63-72. http://asbbs.org/publications/
