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Factors Influencing Dividend Policy in Bangladesh: Survey Evidence from Listed Manufacturing Companies in Dhaka Stock Exchange

European Journal of Business Science and Technology

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Title Factors Influencing Dividend Policy in Bangladesh: Survey Evidence from Listed Manufacturing Companies in Dhaka Stock Exchange
 
Creator Islam, Mohammad Shahidul
Adnan, ATM
 
Description A firm considers various factors when approaching a dividend policy decision. To analyze the determinants of dividend policy in the context of Bangladesh, questionnaire survey has been done from financial decision makers of sample companies. The nonparametric test and factor analysis is used for interpreting results. The research finding exhibits that in the first stage, the economic related factor, legal constraint factor, capital market related factor, residual policy factor, capital source factor and clientele factors are considered in dividend decision making. Then in the second stage, the companies follow the preceding years’ pattern of dividend payment. In the next stage, dividend decision is made mainly on the level of earnings and liquidity.  The decision maker, investors and other stakeholders should follow these findings.
 
Publisher Mendel University in Brno
 
Date 2018-12-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal.ejobsat.cz/index.php/ejobsat/article/view/132
10.11118/ejobsat.v4i2.132
 
Source European Journal of Business Science and Technology; Vol 4 No 2 (2018); pp. 156–173
2694-7161
2336-6494
 
Language eng
 
Relation https://journal.ejobsat.cz/index.php/ejobsat/article/view/132/160
 
Rights Copyright (c) 2018 Mohammad Shahidul Islam, ATM Adnan
http://creativecommons.org/licenses/by-sa/4.0