Determinants of Corporate Dividend Policy in the UK market
This paper examines the determinants of dividend policy for listed companies on the UK market. Since the numerous empirical studies in the US market, UK market is similar but also different from US. In order to examine the determinants of dividend policy, this study introduces a static panel data mo...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English English |
| Published: |
2008
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| Online Access: | https://eprints.nottingham.ac.uk/22386/ |
| Summary: | This paper examines the determinants of dividend policy for listed companies on
the UK market. Since the numerous empirical studies in the US market, UK
market is similar but also different from US. In order to examine the
determinants of dividend policy, this study introduces a static panel data model
for testing six hypotheses as six factors to the dividends payout within period
1990 and 2007. Those factors are represented as the main theories on the
dividends and share repurchases. The results indicate that return on assets;
market-to-book ratio, debt-equity ratio and tax issue are negatively related to
the dividend payout, whereas market capitalization of common equity is
positively correlated. Earnings per share do not explain the dividends in advance.
Consequently, this study provide in understanding the inherent characteristics
and the determinants of dividend policy. |
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