Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350
Abstract This paper investigates the determinants of dividend policy of London Stock Exchange FTSE 350, which uses a firm-level panel data set of FTSE350 during the period 1993 to 2008. Eight research hypotheses are employed, which derived from the main theories of corporate dividend policy to exami...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2009
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| Online Access: | https://eprints.nottingham.ac.uk/22855/ |
| _version_ | 1848792463298265088 |
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| author | Cheng, Wen |
| author_facet | Cheng, Wen |
| author_sort | Cheng, Wen |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract This paper investigates the determinants of dividend policy of London Stock Exchange FTSE 350, which uses a firm-level panel data set of FTSE350 during the period 1993 to 2008. Eight research hypotheses are employed, which derived from the main theories of corporate dividend policy to examine the determinants. Both dynamic panel data model and static panel data model are used to test the determinants of dividend policy. Dynamic panel data model is used to test Lintner‟s model (1956). We find that although there are limitations in Lintner‟s model, the main determinants, i.e. past dividends and current earnings are derived from his model which also influences modern corporate dividend policy. Static panel data model is also utilized. The results suggest that: a) profitability, growth opportunities, firm size and taxation are main determinants of corporate dividend policy; b) The findings support signalling theory and agency theory; c) There is no relevance between financial leverage and dividend policy. |
| first_indexed | 2025-11-14T18:44:48Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-22855 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:44:48Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-228552017-12-26T16:02:13Z https://eprints.nottingham.ac.uk/22855/ Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 Cheng, Wen Abstract This paper investigates the determinants of dividend policy of London Stock Exchange FTSE 350, which uses a firm-level panel data set of FTSE350 during the period 1993 to 2008. Eight research hypotheses are employed, which derived from the main theories of corporate dividend policy to examine the determinants. Both dynamic panel data model and static panel data model are used to test the determinants of dividend policy. Dynamic panel data model is used to test Lintner‟s model (1956). We find that although there are limitations in Lintner‟s model, the main determinants, i.e. past dividends and current earnings are derived from his model which also influences modern corporate dividend policy. Static panel data model is also utilized. The results suggest that: a) profitability, growth opportunities, firm size and taxation are main determinants of corporate dividend policy; b) The findings support signalling theory and agency theory; c) There is no relevance between financial leverage and dividend policy. 2009-09-08 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/22855/1/lixwc11.pdf Cheng, Wen (2009) Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Cheng, Wen Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title | Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title_full | Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title_fullStr | Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title_full_unstemmed | Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title_short | Determinants of Dividend Policy: An Empirical Analysis of UK London Stock Exchange FTSE 350 |
| title_sort | determinants of dividend policy: an empirical analysis of uk london stock exchange ftse 350 |
| url | https://eprints.nottingham.ac.uk/22855/ |