Research Proposal: Examining Dividend Effects on ASX Share Price

This research proposal investigates the effect of dividends on the share prices of the top 50 ASX companies. It begins with an abstract summarizing the study's purpose: to examine the correlation between dividends and share price. The proposal includes an introduction outlining the significance of the research, particularly within the Australian context. The problem statement highlights the importance of understanding the dividend's influence on share prices for the top ASX companies. The research objectives aim to determine the correlation, the direct influence of dividends, and the degree of impact. The proposal includes research questions that explore the relationship between share price and dividends, the direct influence of dividends, how dividends affect share price, and the degree of impact. The justification section explains the potential outcomes of the research, emphasizing the role of dividends in financial stability and attracting investors. The conceptual framework covers women's leadership, company profitability, good performance, and performance comparisons between men and women. The research methodology section details the use of secondary data, literature review, and data analysis techniques. The proposal concludes with references to relevant literature.

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DIVIDEND AND SHARE PRICE

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Abstract
The dividend of the organisation is highly related to the share price of the enterprises
therefore, the purpose of the research proposal is to investigate the influence of dividends on the
top 50 ASX organisations share price. The research proposal has examined that data collection
will be done through the secondary method and a quantitative approach will be used for
achieving the objective of the research. Therefore, through the literature review, it is evaluated
that there are direct association and more dividend leads in more share price as well as increase
the profitability of the companies.

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Table of Contents
Introduction......................................................................................................................................3
Problem Statement...........................................................................................................................3
Research Objectives.........................................................................................................................4
Research Questions..........................................................................................................................4
Justification potential output of the Research..................................................................................4
Conceptual Framework....................................................................................................................5
Women Leadership......................................................................................................................5
Profitability of a Company..........................................................................................................6
Good Performance.......................................................................................................................6
Performance comparison in Men and Women............................................................................6
Research Methodology....................................................................................................................7
Literature Review........................................................................................................................7
Secondary Qualitative & Quantitative Data................................................................................7
Data Analysis...............................................................................................................................8
References........................................................................................................................................9

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Introduction
Discovering the stock share price, ex-dividend price is considered the major factor which
affects the share price of the organisation (Michael, 2019). In Australia, a dividend is impacted
the Australian organisation, therefore the present research proposal is based on finding “The
effect of dividend on share price of top 50 ASX companies”. It is important to research this topic
because in Australia dividend is considered the major approach this is because it influences the
share price of leading companies.
It is because through which other Australian companies can understand the further
influence of this on the functioning of the organisation this is because share price demonstrate
the wealth of top well-known organisation of Australia (Gyapong et al., 2019). In this research
proposal objective, the perception of different authors about the topic, data collection methods
are used. It describes the research question for which further research will be conducted. The
discussion is also made about the good performance, men as well as women comparison etc of
the top 50 ASX companies.
Problem Statement
Dividend leads in motivating the shareholders as well as considered significant strategy
for raising the reputation of the organization in external environment (Ernestin et al., 2020). It is
estimated that not much of the study is conducted to understand the influence of dividend on the
share price so the preset proposal will be on "The effect of dividend on the share price of top 50
ASX companies". It is because the estimation demonstrates that “Suncrop Group limited”,
“Sydney Airport Holdings”, “Coles Group” etc are the organisation whose share price is
impacted by the dividend (Hassan et al., 2019).
It is become significant to be studied because of the reason that it describes the overall
profitability and goodwill of the top 50 ASX companies. Therefore, the payment of dividend in
regular manner raises the organisation’s goodwill (Amiram et al., 2019). The subject is important
as an increase or decrease in share price is because of the dividend. The top AXN companies also

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focus on maintaining the dividend of the organisation because of showing the profit in the
balance sheet (Bowman, 2019).
Research Objectives
The research proposal demonstrates that research will be conducted on understanding "The
effect of dividend on the share price of top 50 ASX companies". To achieve the main aim of the
research other related objectives is also described in the research proposal which includes-
 To examine whether "there is a correlation between the share price and dividend of top
50 ASX companies"
 To understand whether “dividend directly affects only the share price of the company’s”
 To describe “the manner in which the dividend impacts the share price of top 50 ASX
companies”
 To understand “the degree of influence dividend has on the share price”
Research Questions
The research question describes the statement or the question which helps in understanding
the reason for conducting the research (Fargher et al., 2019). The research proposal revealed that
research will be conducted on examining "What is the influence of dividend on top 50 ASX
companies share price". To get the answer to this question research will be focusing on finding
the answers to these research questions-
 How share price and dividend are correlated of the top 50 ASX companies?
 Does dividend directly influence by the share price only?
 Describe the ways in which dividend affects the share price of the top 50 ASX
companies?
 Describe the degree of impact dividend has on top 50 ASX companies share price?
Justification potential output of the Research
The dividend plays an important role in satisfying the needs and requirements of the
employees it provides a positive effect to the company. Therefore, the research proposal

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describes that research will address the issues and problem which is evolving in the present era
and which affects the functioning of the organisation. The research will explain that there is
correlation among the share price and dividend it is because when top 50 ASX companies
provide dividend regularly it will get positive results and share price of the company will be
increased and raise the needs of purchasing the share from the ASX companies which are well-
established and status is high in the market place.
The outcomes of the research will give information about the share price that the
dividend of top ASX companies is influenced by several reasons. The share price is one of the
reasons for this in which an increase in the share price compels the companies to pay higher
dividends which in turn helps in the financial stability and also a wealth of well-established ASX
companies. The research will get the findings of the share price and profitability. It will also
determine the deciding factors in terms of the distribution of the dividends to the shareholders of
ASX companies. The understanding of the degree of effect revealed that share price can increase
the 60% of the goodwill of the top companies and attract a greater number of investors to
purchase the share price of ASX companies. The output of the research will be brought forward
by adopting secondary data sources.
Conceptual Framework
Women Leadership
In the year 2019, about 16% of the ASX companies improve their functioning because of
women's leadership it is because of maintaining the coordination among the team members and
to corporate with the activities of the organisation (Winston, 2019). Therefore, to maintain the
dividend and to gather the information regarding the influence of this o the share price it adopts
the transformational leadership. The women leaders inspire the team and encourage other
members to maintain the better environment in the organisation and adopt several innovative
strategies to increase the profits in the organisation so that dividend is distributed in an equal and
adequate manner. The women leaders play an important role so that dividends will be increased
and it will give positive effects towards the share price due to encouraging investors and public
to purchase the share price of the top 50 ASX companies (Baker et al., 2019).

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Profitability of a Company
An increase in the share price increases the profits of the organisation because of raising
the motivation level in the organisation and increase in the status. It is due to the reason that
more of the other organisations and companies purchase share purchases from the top 50 ASX
companies (Michayluk et al., 2019). The estimation demonstrates that Coles Group increases the
goodwill and their share price is increased because of paying the dividend to the shareholders in
a regular manner, this is a result that this effects in highly positive terms. For example, Dexus
(DXS) has seen rapid growth in the dividend rates in the real estate industry and has the market
share of 13.20 which has a direct influence on the dividend rates to be given to the shareholders
which are 0.45 to 0.60$ per share from 2017 to 2020 (Dexus, 2020). This supports the companies
of Australia to increase the market share and allow the organisation to expand in the international
market because of more investors and strategies which help the companies to expand (Butt et al.,
2019).
Good Performance
In the year 2018, the performance of the top 50 ASX companies is better due to getting
the influence of dividends in a highly positive manner (Banarjee, 2019). The ASX companies
perform better due to providing efficient services and understanding the needs and requirements
of the consumers. This is the reason the profits and revenue of the increased through which
companies provide a regular dividend to their employees. This leads to maintaining good
performance and raise efficiency in the organisation. It is evaluated that the majority of the
profitability of ASX companies increases due to a high level of status and reputation through
which the capabilities and abilities of the companies increases (Lansley & McCann, 2019).
Performance comparison in Men and Women
In the year 2019, it is described that there is no comparison in the performance
comparison between the men and women it is because of an increase in the leadership role of the
women in the organisation (Swan, 2019). The performance is compared through developing the
variables and certain standards so that the actual performance of the men and women will be
compared with the standards. Therefore, there are several driving forces in the organisation
which encourage the men and women to perform better in the top ASX companies. The
companies use a 360-degree performance appraisal method to get feedback from various

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members so that equality is maintained while evaluating the performance of both men and
women in the organisation (Hartzmark & Solomon, 2019). Therefore, top ASX companies have
an equal percentage of men and women at the top level in the hierarchy.
Research Methodology
Literature Review
Mathewsconducted the study to understand the reasons through which share price as well
as dividend is related to each other (Mathews, 2019). The findings of the study revealed that
there is a direct relationship between both of them it is due to the reason because if the dividend
is paid regularly it increases the share price and goodwill of the top 50 ASX companies. The
findings of the study also describe that high dividend maintains high share price and increase the
capabilities of the organisation to maintain a good environment in the organisation (Nguyen et
al., 2020). The analysis also revealed that it leads in encouraging the public to purchase the share
price of ASX companies.
The ASX companies focus more on motivating the shareholders by paying more
dividends so that their reputation is increased in the external environment and describe the better
wealth of the company (Haque et al., 2019). The investigation describes that the dividend of
ASX is affected by the share price and profitability of the organisation. It is because this leads in
increasing the paying capacity of the organisation to pay more to the employees. The study also
finds that it also increases the shareholders of top 50 ASX companies the profitability of the
company is increased in more ratio due to maintaining the balance between the share price and
employees by paying the adequate dividend to them (Pinto & Rastogi, 2019).
The study was conducted by taking the opinions of the ASX companies it is because
through this more number of factors and ways is analysed through which dividend affects the
share price of ASX companies which are on top and well-known (Gyapong et al., 2019). The
findings of the study examined that this can increase the capability of the organisation to invest
more on profitable projects through which more competitive advantage will be gained.

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Secondary Qualitative & Quantitative Data
The research proposal will demonstrate that the study will be performed through the
secondary method that is by taking the opinions of different authors will be taken and
information will also be taken from annual reports and financial data of ASX companies. This is
because of getting accurate information about the subject matter; research will be using both
qualitative and quantitative information that is information which is analysed by the authors
through using correlation coefficient quantitative method that specifically demonstrates the
relationship between the two variables and their relative movements. The two variables are
dividend and share price which are clearly be showed by their increase or decrease in the market.
The whole information gathered and comparison of different authors by describing their similar
and different perceptions about the relationship between dividend and share price among the top
50 ASX companies will be written. Also, the research will elaborate that there is a negative
correlation among share price as well as a dividend in which the company’s earnings in the value
will be taken from reinvesting into the new opportunities.
Data Analysis
The data analysis is done through adopting the critical analysis method in which analysis
of the information will be done more critically. The study will be using a quantitative approach
so that each variable about the effects of dividend is analysed and description is made through
examining the results which authors get the evaluating the overall study through correlation. In
the research, the findings of the objective will be made through evaluating the degree of impact,
manner of correlation, etc. Further, the recommendations to manage the balance and conclusion
will also be provided in the research.

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References
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shareholder taxes: Evidence from changes in dividend tax policy. The Accounting Review, 94(5),
pp.27-55.
Baker, H.K., Dewasiri, N.J., Koralalage, W.B.Y. & Azeez, A.A., 2019. Dividend policy
determinants of Sri Lankan firms: a triangulation approach. Managerial Finance, 5(2), pp.4-8.
Banarjee, A., 2019. Predicting stock return using financial ratios. Accounting and Finance
Research, 8(2), pp.214-25.
Bowman, K., 2019. Relationship of Share price and dividend. Equity, 33(3), p.14.
Butt, A., Khemka, G. & Warren, G.J., 2019. What dividend imputation means. Economic
Record, 95(309), pp.181-99.
Dexus, 2020. DEXUS (DXS) Dividend History. [Online] Available at:
https://www.sharedividends.com.au/dxs-dividend-history/ [Accessed 10 February 2020].
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Asymmetry on Dividends. In 17th International Symposium on Management, pp.13-16.
Fargher, N., Sidhu, B.K., Tarca, A. & Zyl, W.V., 2019. Accounting for financial instruments
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study on Dhaka Stock Exchange. Australian Academy of Accounting and Finance Review, 4(3),
pp.89-99.

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Hartzmark, S.M. & Solomon, D.H., 2019. The dividend disconnect. The dividend disconnect,
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