ASSESSING THE DETERMINANTS OF DIVIDEND POLICY OF BANKS: A STUDY IN BANGLADESH

This study aims to examine different determinants of the dividend policy of banking companies in Bangladesh. The current study considers profitability, investment opportunities, and business risk and ownership concentration to explore their association with the dividend payout ratio. The findings of...

Full description

Saved in:
Bibliographic Details
Published in:Independent business review 2020-01, Vol.13 (1/2), p.47-59
Main Authors: Mamun, Syed A, Uddin, Md Mohan, Mia, Md Shahin
Format: Article
Language:English
Subjects:
Banking industry
Banks
Capital expenditures
Commercial banks
Corporate profits
Decision making
Dividend policy
Earnings per share
Financial performance
Investments
Profitability
Stock exchanges
Stockholders
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study aims to examine different determinants of the dividend policy of banking companies in Bangladesh. The current study considers profitability, investment opportunities, and business risk and ownership concentration to explore their association with the dividend payout ratio. The findings of the study do not support the significant role of these determinants in the dividend policy of banks in Bangladesh except business risk. The significant and positive association between business risk and dividend pay ratio reflects the 'milking the property' strategy of Bangladeshi banks. This study contributes by addition empirical evidence about the determinants of dividend policy in the scarce literature of corporate finance in the context of the emerging economy.
ISSN:1996-3572
2521-2990