Dividend policy and stock price volatility throughout Pakistan

The purpose of this study is to examine the relationship between price volatility and the dividend policy of manufacturing firms listed in Karachi Stock Exchange (KSE). For this reason are sample of 53 manufacturing firms are taken in our sample data. Data is obtained for 6 years from 2006-2011. Data cross sectional in nature. The regression model are used to see the relationship between the dependent variable is price volatility and its relates with independent variables such as dividend yield, net income, dividend payout ratio, Tobin’s Q, return on equity, size and debit equity. The result shows that dividend yield (Dy), size shown a considerably positive impact on price volt (P.volt). However dividend payout ratio (dpr), Tobin’s Q (tq) and net income (Ni) have a significantly negative impact on price volatility (P.volt) shows in our study.