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The aim of this paper is to examine the impact of dividends on stock price volatility in secondary stock market. The importance of stock price volatility has been considered as barometer for measuring the stock market performance. The study has used only secondary data to validate the findings. It also measures the effect of dividends on stock price sensitivity in the Bangladesh stock market using the’ Correlation and Regression Method’ for the period 2004 to 2012 and the sample size is 25 of A category Companies. The main reason to consider this certain period and sample size is time and financial barrier of the researcher. The study finds that dividend announcement of the sample companies have a negative and insignificant impact on the stock price sensitivity in Bangladesh. The study seems to carry an enormous academic value since a very few studies have been undertaken in this area. It may be helpful to the listed companies, stock exchanges, security and exchange commission, researchers, and national policy makers who have been making serious endeavor to protect the interest of stakeholders and to develop the Bangladesh capital market as a whole.

Muhammad Mahbub ur Rahman, Mohammad Nazim-ud-Din. (2014) Impact of Dividends on Stock Price Volatility – Evidence from Some Selected listed Companies in Bangladesh, Abasyn Journal of Social Sciences, Volume-07, Issue-1.
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