Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu

Dividend policy determinants have been explored for decades, yet a consensus on the factors that determine dividend policies among firms has not been so far established as findings differ depending on the industry and sector. This paper aims to contribute to the existing literature by examining the...

Full description

Bibliographic Details
Main Author: Yakubu, Ibrahim Nandom
Format: Article
Language:English
Published: Accounting Research Institute (ARI), Universiti Teknologi MARA (UiTM) 2019
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/30987/
_version_ 1848807638993731584
author Yakubu, Ibrahim Nandom
author_facet Yakubu, Ibrahim Nandom
author_sort Yakubu, Ibrahim Nandom
building UiTM Institutional Repository
collection Online Access
description Dividend policy determinants have been explored for decades, yet a consensus on the factors that determine dividend policies among firms has not been so far established as findings differ depending on the industry and sector. This paper aims to contribute to the existing literature by examining the factors influencing dividend policy of listed banks in Ghana relying on bank-level data spanning 2006 – 2015. Using the pooled ordinary least squares, fixed and random effects as estimation techniques, the findings show that dividend policy of banks is significantly driven by bank growth, profitability, bank size, and leverage. Capital adequacy ratio and domestic macroeconomic instability proxied by inflation were found to be insignificant. The findings lend strong support for the agency cost theory and the pecking order hypothesis of dividend policy.
first_indexed 2025-11-14T22:46:01Z
format Article
id uitm-30987
institution Universiti Teknologi MARA
institution_category Local University
language English
last_indexed 2025-11-14T22:46:01Z
publishDate 2019
publisher Accounting Research Institute (ARI), Universiti Teknologi MARA (UiTM)
recordtype eprints
repository_type Digital Repository
spelling uitm-309872022-06-15T03:06:10Z https://ir.uitm.edu.my/id/eprint/30987/ Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu mar Yakubu, Ibrahim Nandom Corporate organization. Corporate governance International business enterprises. Multinational corporations Management. Industrial Management Dividend policy determinants have been explored for decades, yet a consensus on the factors that determine dividend policies among firms has not been so far established as findings differ depending on the industry and sector. This paper aims to contribute to the existing literature by examining the factors influencing dividend policy of listed banks in Ghana relying on bank-level data spanning 2006 – 2015. Using the pooled ordinary least squares, fixed and random effects as estimation techniques, the findings show that dividend policy of banks is significantly driven by bank growth, profitability, bank size, and leverage. Capital adequacy ratio and domestic macroeconomic instability proxied by inflation were found to be insignificant. The findings lend strong support for the agency cost theory and the pecking order hypothesis of dividend policy. Accounting Research Institute (ARI), Universiti Teknologi MARA (UiTM) 2019-12 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/30987/1/30987.pdf Yakubu, Ibrahim Nandom (2019) Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu. (2019) Management & Accounting Review (MAR) <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review_=28MAR=29.html>, 18 (3): 2. pp. 31-50. ISSN 2550-1895 https://mar.uitm.edu.my/
spellingShingle Corporate organization. Corporate governance
International business enterprises. Multinational corporations
Management. Industrial Management
Yakubu, Ibrahim Nandom
Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title_full Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title_fullStr Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title_full_unstemmed Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title_short Revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in Ghana / Ibrahim Nandom Yakubu
title_sort revisiting the factors influencing corporate dividend policy decisions: evidence from listed banks in ghana / ibrahim nandom yakubu
topic Corporate organization. Corporate governance
International business enterprises. Multinational corporations
Management. Industrial Management
url https://ir.uitm.edu.my/id/eprint/30987/
https://ir.uitm.edu.my/id/eprint/30987/