Journal ArticleDOI
Determinants of dividend payout ratios in Ghana
Mohammed Amidu,Joshua Abor +1 more
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TLDR
In this article, the determinants of dividend payout ratios of listed companies in Ghana were examined using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six-year period.Abstract:
Purpose – This study seeks to examine the determinants of dividend payout ratios of listed companies in Ghana.Design/methodology/approach – The analyses are performed using data derived from the financial statements of firms listed on the Ghana Stock Exchange during a six‐year period. Ordinary Least Squares model is used to estimate the regression equation. Institutional holding is used as a proxy for agency cost. Growth in sales and market‐to‐book value are also used as proxies for investment opportunities.Findings – The results show positive relationships between dividend payout ratios and profitability, cash flow, and tax. The results also show negative associations between dividend payout and risk, institutional holding, growth and market‐to‐book value. However, the significant variables in the results are profitability, cash flow, sale growth and market‐to‐book value.Originality/value – The main value of this study is the identification of the factors that influence the dividend payout policy decisio...read more
Citations
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Journal ArticleDOI
Determinants of Dividend Payout Ratios: Evidence from United States~!2010-01-07~!2010-04-06~!2010-05-12~!
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Dynamics and determinants of dividend policy in Pakistan (evidence from Karachi stock exchange non-financial listed firms)
Hafeez Ahmed,Attiya Yasmin Javid +1 more
TL;DR: In this article, the authors examined 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 and found that the firms rely on both current earning per share and past dividend per share to set their dividend payments.
How does dividend policy affect performance of the firm on Ghana Stock exchange
TL;DR: In this article, the authors examined whether dividend policy influences firm performance in Ghana and found positive relationships between return on assets, dividend policy, and growth in sales, while negative associations between return of assets and dividend payout ratio, and leverage.
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The determinants of dividend policy in Pakistan
Hafeez Ahmed,Attiya Yasmin Javid +1 more
TL;DR: In this article, the authors examined 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 and found that the profitable firms with more stable net earnings can afford larger free cashflows and therefore pay larger dividends.
Journal ArticleDOI
Investment opportunities, corporate finance, and dividend payout policy: Evidence from emerging markets
Joshua Abor,Godfred A. Bokpin +1 more
TL;DR: In this article, the authors investigate the effects of investment opportunities and corporate finance on dividend payout policy and find that a significantly negative relationship between investment opportunity set and dividend payment policy is found.
References
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The Market for “Lemons”: Quality Uncertainty and the Market Mechanism
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Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
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Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
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Large Shareholders and Corporate Control
Andrei Shleifer,Robert W. Vishny +1 more
TL;DR: In this article, the authors explore a model in which the presence of a large minority shareholder provides a partial solution to the free-rider problem in a corporation with many small owners, where the corporation may not pay any one of them to monitor the performance of the management.