Similarly higher the leverage higher would be the volatility of the share price

Similarly higher the leverage higher would be the

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that higher the dividend payout ratio, higher would be the volatility of the share price. Similarly, higher the leverage, higher would be the volatility of the share price. The result also shows that higher the growth of total assets, higher would be the volatility of the share price. The negative correlation between dividend yield ratio and share price volatility indicates that higher the dividend yield ratio, lower would be the volatility of the share price. Similarly, higher the size of total assets, lower would be the volatility of the share price. Table 4: Computation of Pearson's coefficients of correlations of share price volatility PV DPR DYR LEV G SZ PV 1 DPR .201(*) 1 DYR -.032 .473(**) 1 LEV .001 .075 .038 1 G .342(**) -.002 -.303(**) -.203(*) 1 SZ -.161 .050 .298(**) .090 -.304(**) 1 * Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed). Regression results The regression of explanatory variables and control variables on market price per share is presented in Table 5. The table indicates that beta coefficients are negative for retained ratio and liquidity. The retained ratio is significant at 5 percent level of significance and liquidity is significant at 1 percent level of significance. The result hence indicates that larger the retained ratio, lower would be market price per share. The results also indicates that larger the liquidity ratio of banks, lower will be market price per share. The beta coefficients are positive for earnings per share, return on equity and profit after tax. Thus, the result indicates that higher the earnings per share, higher would be the market price per share where beta coefficients are significant at 1 percent level of significance. Similarly, higher the return on equity, higher would be the market price per share. The result also shows
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8 that higher the profit after tax, higher would be the market price per share. However, coefficients are not significant for return on equity and profit after tax. Table 5: Regression analysis of market price per share This table shows regression analysis results of variables of Market price per share. The model is, MPS t = α + β 1 EPS t + β 2 RR t + β 3 ROE t + β 4 PAT t + β 5 LID t + e t . Dependent variable is market price per share and independent variables are earnings per share, retained ratio, return on equity, profit after tax and liquidity. The reported results also include the values of F-statistics (F) and coefficient of determination (R 2 ). '*' sign indicates that F-statistics are significant at 5 percentage level and '**' indicates that F-statistics are significant at 1 percentage level. Models Intercept Regression Coefficients of R 2 SEE F EPS RR ROE PAT LID 1 -139.90 (-1.01) 27.39 (10.05)** .503 857.62 101.18** 2 1254.06 (7.73)** -6.754 (-2.59)* .063 1177.42 6.74* 3 770.24 (4.75)** 9.278 (1.72) .029 1198.67 2.98 4 698.98 (3.90)** .000 (1.95) .037 1193.85 3.82 5 1558.87 (6.57)** -52.94 (-2.88)** .077 1168.75 8.32** 6 182.63 (1.28) 28.34 (11.48)** -8.31 (-4.84)** .598 775.05 73.66** 7 628.18 (3.5)** 32.25 (12.08)** 13.44 (-3.56)** -60.83 (-5.22)** .639 738.81 57.69** 8 426.08 (2.83)** 44.43 (15.39)** -6.01 (-4.27)* 7.28 (-2.31) .001 (-6.30) -13.18 (-1.16)** .771 593.72 64.75** The regression coefficient of share price volatility is presented in Table 6. The table shows the regression result for the independent variables of share price volatility. The beta coefficients are negative for dividend yield ratio and size. Thus, the result indicates that higher the dividend yield ratio, lower would be volatility of share price. However,
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