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

Mohammad Shahidul Islam and Adnan Atm
Additional contact information
Mohammad Shahidul Islam: BGMEA University of Fashion & Technology, Dhaka, Bangladesh
Adnan Atm: BGMEA University of Fashion & Technology, Dhaka, Bangladesh

European Journal of Business Science and Technology, 2018, vol. 4, issue 2, 156-173

Abstract: 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 observed result reveals that present earnings and liquidity are the most likely factors for the firm in deciding the payout policy.

Keywords: factor analysis; EPS; DPR; MM model; Lintner model (search for similar items in EconPapers)
JEL-codes: A10 A11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ejobsat.cz/doi/10.11118/ejobsat.v4i2.132.html (text/html)
http://ejobsat.cz/doi/10.11118/ejobsat.v4i2.132.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:men:journl:v:4:y:2018:i:2:p:156-173

DOI: 10.11118/ejobsat.v4i2.132

Access Statistics for this article

European Journal of Business Science and Technology is currently edited by Svatopluk Kapounek

More articles in European Journal of Business Science and Technology from Mendel University in Brno, Faculty of Business and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Ivo Andrle ().