THE IMPACT OF DIVIDEND POLICY ON SHARE PRICE VOLATILITY IN TANZANIA

Abstract

The study aimed at assessing the impact of dividend policy on the share price volatility of the firms listed at Dar es Salaam Stock Exchange (DSE) where dividend per share, dividend yield and earning per share were advanced as study’s independent variables and share price volatility as study’s dependent variable. The study adopted quantitative research design involving correlation and descriptive design. The study utilized secondary data over the sampled sample of four companies over the study period of 10 years (2013- 2024). The study utilized panel data and employed multiple linear regression model to determine the relationship between dividend policy and share price volatility. The study found that Dividend per share and Earning per Share have positive relationship with share price volatility while Dividend Yield found to have negative relationship. The study's author concludes that dividends per share are the single most significant variable in determining the market value of publicly listed company stock. Therefore, business owners who want to attract investors need to develop and implement strategies that will improve their companies' bottom lines. Keywords; Dividend policy, share price volatility, Dar es Salaam Stock Exchange (DSE)