| Abstract [eng] |
One of a company’s main financial goals is to maximize its shareholders ’wealth, which is closely related to several key ways in which a shareholder receives a return on their investment, namely dividends and a return on capital gains resulting from a change in stock prices. For these reasons, dividend policy decisions and the issue of the relationship between stock price volatility remain consistent in corporate financial management and the scientific literature on it. The abundance of research and the different results obtained from it prove that there is still a lack of concrete answers in the literature to address this problem. The results of the analysis show that research in this direction focuses on the major global financial markets and assesses short periods, does not assess the global economic situation and its conditions, which in one way or another influence the strategic decisions of companies that may affect dividend policy and its relationship with stock price volatility. There is also a lack of research assessing not only the overall sample of market enterprises, but also comparisons between different markets or different sectors of activity of companies, where dividend policy decisions may also vary depending on the state of the economy and its circumstances. Therefore, it is important to study, analyze and understand the dividend policy, the factors influencing its decisions at different stages of the economic cycle, and the effect of these decisions on changes in the market value of shares comparing the performance of companies in different sectors. The object of the research - the relationship between dividend policy decisions and stock price volatility. The aim of the study - to determine the relationship between dividend policy decisions and share price changes, at different stages of the business cycle and in the sectors of corporate activity. In the first part of the project, an analysis is performed to assess the relevance of the problem of the relationship between dividend policy and share repurchase decisions with stock price volatility by assessing different sectors and stages of the business cycle. The second part presents an analysis of theoretical solutions investigating and explaining dividend policies and share repurchase types, methods, theories, and their relationship to corporate stock price volatility models. The third part of the project presents an empirical research model based on the conclusions of the analysis of the second part of the work, which aims to assess the relationship between dividend policy decisions and stock price volatility at different stages of the business cycle and corporate sectors. The last fourth part of the project describes the regression model, which examines the relationship between stock price volatility and dividend policy indicators and other internal control variables, and presents the results and their evaluation. At the end of the project, the main conclusions and recommendations of the study are presented, which identify a significant negative relationship between dividend policy and 5 stock price volatility, which varies under the influence of the relevant business sector and different stages of the business cycle. |
