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Determinants of dividend payout policy: Evidence from Bangladesh

Author

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  • Sheikh Taher Abu

    (Department of Finance and Banking, Jahangirnagar University)

Abstract

Dividend payout policy has potential roles to be considered as part of the firm’s strength to operate smoothly in the corporate world. Profitability along with other essential factors has significant impact on dividend decisions of a corporation. Thus, it becomes an important issue for firm’s to identify the factors determining dividend payout policy. Considering the existing literatures on dividend determinants, the paper attempts to construct an empirical model for selected commercial banks in Bangladesh and provide recommendations which will further develop the dividend payout policy for banks and other industry listed in Dhaka and Chittagong Stock Exchange (DSE & CSE). The empirical findings reveal that current earnings and liquidity has potential roles for firms to determine payout policy.

Suggested Citation

  • Sheikh Taher Abu, 2012. "Determinants of dividend payout policy: Evidence from Bangladesh," International Journal of Economic Practices and Theories, Academy of Economic Studies - Bucharest, Romania, vol. 2(3), pages 119-126, July.
    • Handle: RePEc:aes:ijeptp:v:2:y:2012:i:3:p:119-126
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    dividend policy; econometric model; DSE & CSE; commercial banks;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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