The impact of divided policies on share prices selected service listed companies

Abstract

Several theories and models have been documented on the relevance of dividendpolicy. More authors continue to produce various conclusions about dividend policyfrom their. empirical studies. In this regard, this research attempts to study therelationship between dividend policy and the impact of dividend policy on share priceof non-financial companies listed on Colombo Stock Exchange in Sri Lanka'The data of the selected non-financial companies during the period of five years from2013-2017 extracted from the annual reports were used for this study. Regressionmodel was used to estimate the relationship between dividend policy and the marketprice per share.The result of the study revealed that there is a significant positive relationshipbetween dividend payout and the share price. The finding of the study emphasizes thatthe managers. should dedicate adequate time in designing a dividend policy thatenhance the firm share price.