How does the impact of dividend policy on stock prices volatility vary across industries and market conditions?
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The impact of dividend policy on stock price volatility varies across industries and market conditions. Studies on the Pakistan Stock Exchange (PSX), S&P 100, Gulf Cooperation Council (GCC) countries, chemical industries in Pakistan, and Nigerian Exchange provide insights. In the PSX and S&P 100, dividend yield positively affects stock price volatility, while the payout ratio shows mixed results. In GCC countries, dividend policy does not significantly impact stock price volatility. However, in the chemical industries of Pakistan and the Nigerian Exchange, dividend policy has a significant effect on share price volatility, with dividend payout ratio playing a crucial role. These findings suggest that the relationship between dividend policy and stock price volatility is nuanced and influenced by industry-specific factors and market conditions.
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| The impact of dividend policy on stock prices varies across industries. In the chemical sector, dividend policy significantly affects market prices, influencing financial decision-making and shareholder preferences. | |
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| The impact of dividend policy on stock price volatility varies across industries, with dividend yield positively affecting volatility and dividend payout ratio negatively influencing it, as evidenced in Pakistan's market conditions. | |
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