The roots of the literature of determinants of dividend policy relate to the linter (1956) who conducted a traditional study on how U.S. managers formulate dividend decisions. He developed a compressed mathematical model supported on survey of 28 well recognized industrial U.S. firms which is measured to be a finance standard.
Dividend policy has provoked much controversy over the years in the field of corporate finance. The major controversy is whether firm’s value is influenced by the choice of dividend policy. “The higher dividends payout, the higher firm value” was the initial belief for corporations until a school of thoughts came out: dividend irrelevance.
The dividend policy of the firm does not affect the firm value at all. However, we can say that empirical evidence on the determinants of dividend policy is unfortunately very complex. Basis on which corporations pay out dividends to the share holders is still an unresolved puzzle.In the second research paper an agency model of dividend policy is estimated and tested on a sample of Indian firms using Weighted Least Squares methodology. The third research paper applies panel data procedures to estimate and test a model of the determinants of leverage, using the entire population of non-financial quoted firms in Mauritius.We reckon dividend policy as a crucial factor in formation of corporate value. Different dividend payout strategies employed by various enterprises across three countries (Ukraine, Russia, Croatia) lead to various performances. Thus, we regard the effects spurred by paid dividend as a core of our study.
This paper investigates the determinants of dividend policy in Tanzania. The study employed a panel data of non-financial firms listed on the Dar es Salaam Stock Exchange (DSE) for the period 2008.Read More
This study examines the dynamics and determinants of dividend payout policy of 320 non-financial firms listed in Karachi Stock Exchange during the period of 2001 to 2006. For the analysis we use dividend model of Lintner (1956) and its extended versions in dynamic setting. The results consistently support that Pakistani listed non-financial firms rely on both current earning per share and past.Read More
The purpose of this study is to examine the factors that influence dividend policy in the Malaysian banking sector. For this purpose, a sample of 19 commercial banks in Malaysia were selected including eight domestic banks and eleven foreign banks. Ordinary Least Squares (OLS) Regression was used to examine the impact of leverage, profitability, liquidity, past dividend, size of firm, sales.Read More
Factors Affecting the Dividend Policy. Many investors tend to flock to dividend-paying companies because they provide a source of income. But there is a lot of work done on the company’s end to determine how much to pay shareholders and what changes to make to the dividend policy.Read More
The dividend payout policy is one of the most debated topics within corporate finance and some academics have called the company’s dividend payout policy an unsolved puzzle. Even though an extensive amount of research regarding dividends has been conducted, there is no uniform answer to the question: what are the determinants of the.Read More
Cash Flows and Dividend Policy 2 Cash Flows as determinants of dividends policy in mature firms: Evidence from FTSE 250 and AIM listed firms ACKNOWLEDGEMENTS I would like to thank my supervisor, Dr. K. D’Silva not only for the advice, guidance and support he has given me with my dissertation, but also for being helpful throughout the year.Read More
This dissertation follows a quantitative research method and it is based on three dividend theories: dividend signaling theory, residual dividends theory and the free cash flow hypothesis. In order to examine the empirical evidence of the determinants of dividend policy in firms in Malaysia, a panel analysis and cross sectional analysis have been carried out.Read More
Dividend policy is an unsolved mystery in the field of finance. Even after decades of investigations, scholars still disagree on the factors that influence dividend decisions of companies. Hence, this paper explored the determinants of dividend policy of companies listed on the Stock Exchange of Mauritius.Read More
FACTORS INFLUENCING DIVIDEND POLICY DECISIONS IN BANKING SECTOR: AN INDIAN EVIDENCE Jasvir S.Sura 1 Dr. Karam Pal 2 Prof. B.S. Bodla 3 Abstract The present study re-examines the applicability of Lintner’s (1956) and Britain (1966) path breaking analyses of dividend policy. The banks listed on National Stock Exchange, and declaring dividend.Read More
Dividend Policy and Firm Value. There are two major schools of thought among finance scholars regarding the effect dividend policy has on a firm’s value. Although Miller and Modigliani argue that dividend policy does not have a significant effect on a firm’s value,11 Myron Gordon, David Durand, and John Lintner have argued that it does.Read More