Determinants of dividend payout ratios in Ghana
AbstractPurpose – 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 decisions of listed firms in Ghana.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Journal of Risk Finance.
Volume (Year): 7 (2006)
Issue (Month): 2 (March)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Joshua Abor & Godfred A. Bokpin, 2010. "Investment opportunities, corporate finance, and dividend payout policy: Evidence from emerging markets," Studies in Economics and Finance, Emerald Group Publishing, vol. 27(3), pages 180-194, August.
- Charles K.D. Adjasi, 2009. "Macroeconomic uncertainty and conditional stock-price volatility in frontier African markets: Evidence from Ghana," Journal of Risk Finance, Emerald Group Publishing, vol. 10(4), pages 333-349, August.
- Waseem Khan & Naheed Ashraf, 2014. "In Pakistani Service Industry: Dividend Payout Ratio as Function of some Factors," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(1), pages 390-396, January.
- Imran, Kashif & Usman, Muhammad & Nishat, Muhammad, 2013. "Banks dividend policy: Evidence from Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 88-90.
- Darakhshan Younis & Attiya Yasmin Javid & Pakistan Institute of Development Economics, Islamabad, 2014. "Market Imperfections and Dividend Policy Decisions of Manufacturing Sector of Pakistan," PIDE-Working Papers 2014:99, Pakistan Institute of Development Economics.
- Raluca-Georgiana MOSCU, 2012. "Determinant Agents Analysis of Dividend Policies Practiced by Companies Listed in Great Britain and France," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 60(1), pages 28-34, March.
- Mobeen Ur Rehman & Aabid Hussain, 2013. "Impact of Dividend Policy on Performance of Firms Having Stocks Listed In an Emerging Stock Market," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(1), pages 20-29, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister).
If references are entirely missing, you can add them using this form.