Impact of liquidity ratio and dividend on share price: a study of food and allied, engineering, and pharmaceuticals and chemicals industries in Bangladesh

Abstract

This research focused on analyzing the impact of liquidity ratios, dividend on share price of three industries. The industries are engineering, food and allied, pharmaceuticals and chemicals. The total sample size for this research is 425. A total of 85 companies’ data has been collected. Five years of data have been collected from annual reports and Lanka Bangla. The duration of the year is 2016-2020. The current ratio and share price have a significant negative relationship. Also, there is a negative relationship between quick ratio and share price. On the other hand, there is a strongly positive relationship between cash ratio and share price. In addition, there is a significant positive relationship between dividend and share price. Secondary data has been used for conducting this research. It is the core limitation of this research. Besides, we were not able to find some companies' data. And sample size has decreased because of that. This research wanted to find out the relationship between share price with liquidity ratios and dividend. Now general people, investors, shareholders, and creditors can make decisions based on our study’s findings. We hope this research will be helpful for both academicians and professionals.