Moderation Effect of Market Condition on the Relationship between Dividend Yield and Stock Return

12 Pages Posted: 14 Feb 2011 Last revised: 3 Feb 2014

See all articles by Meysam Safari

Meysam Safari

SEGi University

Reza Tahmoorespour

University Putra Malaysia- Faculty of Economics and Management

Date Written: 2013

Abstract

This paper examines the existence of moderation effect of market condition on the relationship between dividend yield and stock return in Bursa Malaysia. Results confirm the existence of moderating effect of market condition. However, if the market condition is assumed to have direct impact on the stock return, the tested moderating variable fails to be significant in all forms of market condition. Results also suggest that incorporating moderation variable will improve the explanation power of the model in terms of R-square. In addition, models have been controlled for the size effect of the firms.

Keywords: Moderation Effect, Market Condition, Dividend Yield, Stock Return, Malaysia

JEL Classification: G1

Suggested Citation

Safari, Meysam and Tahmoorespour, Reza, Moderation Effect of Market Condition on the Relationship between Dividend Yield and Stock Return (2013). International Center for Business Research , Forthcoming. Available at SSRN: https://ssrn.com/abstract=1761396 or http://dx.doi.org/10.2139/ssrn.1761396

Meysam Safari (Contact Author)

SEGi University ( email )

Taman Sains Selangor,
Kota Damansara, PJU 5,
Petaling Jaya,, Selangor 47810
Malaysia

Reza Tahmoorespour

University Putra Malaysia- Faculty of Economics and Management ( email )

43400 UPM Serdang
Selangor
Serdang, Selangor 43400
Malaysia

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