THE RELATIONSHIP BETWEEN DIVIDEND POLICY AND STOCK PRICES: AN EMPIRICAL ANALYSIS

Abstract

This article investigates the relationship between dividend policy and stock prices using empirical evidence from publicly traded companies. Dividend policy is a critical decision for companies, and it has been shown to have a significant impact on their stock prices. The study uses a sample of companies listed on the New York Stock Exchange (NYSE) to analyze the relationship between dividend policy and stock prices. The results of the study reveal that there is a positive correlation between dividend policy and stock prices, indicating that companies that pay higher dividends tend to have higher stock prices. The article provides valuable insights into the factors that influence the decision-making process of companies in setting dividend policies and the impact of these policies on their stock prices. The results of the study provide valuable insights into the relationship between dividend policy and stock prices in emerging markets and can be useful for investors, analysts, and policymakers.