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The purpose of this study is to empirically investigate whether the dividend policy affects the stock price volatility in the S&P 100. A sample of 34 companies was examined on a quarterly basis between 2010 and 2020. The 1,496 observations were analysed using a pooled ordinary least-squares regression, a fixed effect model, and a random effect model. The dependent variable of share price volatility was regressed against the dividend policy represented by the independent variables of dividend yield and payout ratio. To consider further influences on the stock price volatility the control variables leverage, size, asset growth, and earnings volatility were included. The results show that the dividend yield has a positive effect on share price volatility, while the payout ratio was insignificant. Apart from size, which was significantly negative, all other control variables were found insignificant. These findings support the dividend relevance theory and suggest that the share price risk is influenced by dividend policy in the form of dividend yield. Since the fixed effect model was the best estimator, these results are only applicable to the sample, not the population.
In 2020 the new COVID-19-virus brought an external shock to the stock markets. In this situation effective leadership was essential to bring companies through the crisis.
Political observation showed that countries led by women managed the pandemic situation more effectively than those led by men. Therefore, the research objective of this article is to examine whether female leaders were also more successful to guide companies through the pandemic. Success in this study is defined as financial performance based on stock prices.
To find out whether female managers showed a better financial performance during this crisis, this study examined all companies listed on the German Stock Exchange, which have at least 50 % women in the board. To compare this female managed companies to firms managed mainly by male managers, a market value weighted index for the female managed companies was conducted and compared to the German Stock Index DAX by looking at several financial key figures.
The analysis of these key figures shows that female managed companies outperformed male managed companies in terms of return as well as risk in the year of the COVID-pandemic but were not able to keep their overperformance in the subsequent years. This may be an indicator that women are superior in leading a company through a crisis but suffer in terms of performance when times have calmed down.