Panel Data Study of Dividend Policy Effect on Firms’ Value: Study on Manufacturing Sector of Bangladesh

The impact of dividend on market price of share is a controversial issue. To solve this issue in our market perspective, this study is done whether there is impact of DPR on PE or not. The panel data analysis (FE and RE model) is used to find out the impact of dividend on market price. The study is conducted on manufacturing sector and is found that the DPR has impact on PE. There is other co factors (age of the firm), which also have impact on PE. So, the findings support the relevance theory of dividend on shareholders’ wealth. This finding will help the dividend decision makers and investors for taking corrective dividend decision.