Determinants of Corporate Dividend Policy: Analysis of the U.K. market
Till date, a number of studies have been conducted and published on the determinants of dividend policy. However, all the studies lag behind as none of the studies have been able to identify all the determinants. The major objective of this dissertation is to identify the determinants of dividend po...
| 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/23235/ |
| _version_ | 1848792535674126336 |
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| author | Agarwal, Tarun |
| author_facet | Agarwal, Tarun |
| author_sort | Agarwal, Tarun |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Till date, a number of studies have been conducted and published on the determinants of dividend policy. However, all the studies lag behind as none of the studies have been able to identify all the determinants. The major objective of this dissertation is to identify the determinants of dividend policy in the UK market. This is because one can find enormous research published on U.S. companies. However, these results may not be true for the companies considered for our study.
With a view to analyse the determinants, this paper chooses six factors for the regression test for a period of 2001 – 2008. A panel dataset has been created and the model is tested. The results indicate that liquidity, leverage and growth explain the most variation in dividend yield. Liquidity and leverage have a positive relationship whereas profitability, firm size and growth share an inverse relationship with dividend yield. However, this study shows that profitability does not have a positive relationship as predicted by the theoretical literature and empirical evidence. All other variables are in the predicted direction and consistent with various empirical studies.
Consequently, this study may provide some understanding in the determinants of dividend policy. |
| first_indexed | 2025-11-14T18:45:57Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-23235 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:45:57Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-232352017-12-21T01:58:32Z https://eprints.nottingham.ac.uk/23235/ Determinants of Corporate Dividend Policy: Analysis of the U.K. market Agarwal, Tarun Till date, a number of studies have been conducted and published on the determinants of dividend policy. However, all the studies lag behind as none of the studies have been able to identify all the determinants. The major objective of this dissertation is to identify the determinants of dividend policy in the UK market. This is because one can find enormous research published on U.S. companies. However, these results may not be true for the companies considered for our study. With a view to analyse the determinants, this paper chooses six factors for the regression test for a period of 2001 – 2008. A panel dataset has been created and the model is tested. The results indicate that liquidity, leverage and growth explain the most variation in dividend yield. Liquidity and leverage have a positive relationship whereas profitability, firm size and growth share an inverse relationship with dividend yield. However, this study shows that profitability does not have a positive relationship as predicted by the theoretical literature and empirical evidence. All other variables are in the predicted direction and consistent with various empirical studies. Consequently, this study may provide some understanding in the determinants of dividend policy. 2009-12-08 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/23235/1/Final_Dissertation_-_Tarun_Agarwal_-_4091104.pdf Agarwal, Tarun (2009) Determinants of Corporate Dividend Policy: Analysis of the U.K. market. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Agarwal, Tarun Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title | Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title_full | Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title_fullStr | Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title_full_unstemmed | Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title_short | Determinants of Corporate Dividend Policy: Analysis of the U.K. market |
| title_sort | determinants of corporate dividend policy: analysis of the u.k. market |
| url | https://eprints.nottingham.ac.uk/23235/ |