Dividend Yield and Stock Return in Different Economic Environment: Evidence from Malaysia

Safari, Meysam (2009): Dividend Yield and Stock Return in Different Economic Environment: Evidence from Malaysia.

Abstract

This study investigates the relationship between dividend yields and stock returns in bull and bear markets. Evidences from developed countries show that there should be a positive correlation between dividend yields and stock return in bear markets and a negative correlation between dividend yields and stock return during the bull markets. Findings of this study, in emerging market content, show that there is a positive relation between dividend yield and stock returns in both bull and bear markets which are not consistent with previous works.

• Item Type: MPRA Paper
• Language: English
• Keywords: Dividend Yield; Stock Return; Economic Environment; Bull/Bear Market; Malaysia
• Subjects: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D53 - Financial Markets; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations ; Cycles; G - Financial Economics > G3 - Corporate Finance and Governance > G35 - Payout Policy; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; G - Financial Economics > G0 - General > G01 - Financial Crises

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