The Impact of Dividend Payout Policy on Stock Return Volatility Of Companies Listed on The Warsaw Stock Exchange

Ewa Blaszke


The dividend payout policy has been the subject of extensive research for years. However, the issue of the impact of dividend payouts on the company’s stock return volatility remains unsolved. The purpose of the paper was to examine whether the dividend policy of companies listed on the Warsaw Stock Exchange affects the volatility of stock return. The research sample concerns 60 firms included in the WIG20 and mWIG40 indices. Consistent with dividend signaling, it was proved that the dividend payout reduces the volatility of the company’s stock return. However, no statistically significant relationship was found between the dividend yield and the firm’s risk. The dividend yield illustrates the proportion of the benefits arising from owning the company’s stock that the investor receives at the time of dividend payout. It could be expected that the greater the portion of the total value of the company’s shares that investor receives instantly, the lower the company’s risk. For this reason, the lack of any statistically significant link between dividend yield and stock return volatility seems to oppose the signaling theory.
Author Ewa Blaszke (E&F / DF)
Ewa Blaszke,,
- Department of Finance
Publication size in sheets0.55
Book Soliman Khalid S. (eds.): Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global Challenges, 2020, International Business Information Management Association (IBIMA), ISBN 9780999855141
Keywords in EnglishDividend payout policy, stock return volatility, companies, Warsaw Stock Exchange
Referenced project[17] Program doskonałości naukowo - badawczej INTEREKON . . Project leader at WUEB: Ewa Stańczyk-Hugiet, , start date 01-01-2019, end date 31-12-2022, in run
Languageen angielski
Blaszke_E_The_Impact_of_Dividend_Payout.pdf 146,68 KB
Score (nominal)70
Score sourceconferenceList
Citation count*
Additional fields
UwagaThe project is financed by the Ministry of Science and Higher Education in Poland under the programme "Regional Initiative of Excellence" 2019 - 2022 project number 015/RID/2018/19 total funding amount 10 721 040,00 PLN
Share Share

Get link to the record

* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.