Dividend Policy and Share Price Volatility: Evidence from Listed Non-Financial Firms in Sri Lanka

The prime objective of this research is to investigate the impact dividend policy on share price volatility in Colombo Stock Exchange (CSE). A sample 81 listed non -financial firms from CSE Sri Lanka examined using panel data analysis for a five years period 2013 2017. Dividend has been measured by pay-out, yield and per which are explanatory variables study after controlling firm size financial leverage. According random effect regression analysis, only 25% movements prices explained considered study. shows significant positive whereas negative movements. Firm illustrates influence indicating large companies high. But, pay-out leverage not significantly persuaded Therefore, it concluded that yield, have Lankan context findings line with relevance theory. can be as protective mechanism maintain order enhance shareholders wealth.