4th SRS - DFIN 2015
Permanent URI for this collectionhttp://repository.kln.ac.lk/handle/123456789/12120
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Item Impact of Corporate Dividend Policy on Share Price Volatility of Listed Companies in Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Nuwani, R.A.D.N.The purpose of this research is to investigate the impact of dividend policy on share price volatility in Colombo Stock Exchange (CSE). A sample of 83 listed companies in non-financial sector from CSE is examined using multiple regression models for a period from 2012 to 2014. The key dividend policy measures are dividend yield and dividend pay-out which are explanatory variables of the study after controlling for asset growth, company size, financial leverage and earning volatility. As per the regression analysis, only 14% of the movements in share prices are explained by the dividend yield and dividend pay-out. Dividend yield presents significant positive impact on share price volatility by indicating shares of large dividend paying companies are more risky to hold as an investment. Company size shows significant positive influence on share price volatility by indicating greater the size of companies share price volatility is high. Other explanatory variables of dividend pay-out, asset growth, financial leverage and earning volatility are insignificantly influence on share price volatility. As per the overall findings it can concluded that dividend policy has an impact on share price volatility in Sri Lankan context. Corporations have an ability to use the corporate dividend policy as a controlling mechanism to control share price volatility which best suit for their future targets. The findings of the research are support for the dividend relevance theory.Item Dividend Determinates of Manufacturing Companies of Sri Lanka: Empirical Evidence from Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, 2015) Ishara, M.N.F.Dividend distribution decision is one of the key areas of decision making, it follows up with the questions as of “Are we going to declare dividends”, if so “how much to declare”. These questions should be addressed by the finance manager so that it would not affect any interested stakeholder party adversely. This research is conducted to identify what are the key determinants of dividend payments of manufacturing companies in Sri Lanka. Various researches have being conducted in the similar scope including researches in south Asian region, yet within the Sri Lankan stock market the above said scope has not being addressed. I have made an attempt to cover this gap through this research. The research is conducted on fifteen selected manufacturing companies that often pays dividends which are listed in Colombo stock exchange. I have selected five independent variables supported by previously done researches. Namely - profitability, firm size, liquidity, leverage and growth. These variables are observed to its performance with dividend pay-out ratio, which is my dependent variable. I was able to conclude that there is a significant effect of the profitability determinant when paying dividends in manufacturing companies in Sri Lanka.