EFFECT OF DIVIDEND POLICY ON FIRM’S PERFORMANCE: AN EMPIRICAL EVIDENCE FROM BANGLADESH

Back to Page Authors: M. Enamul Hasan, Rezaun Nessa Linza

Keywords: dividend policy, firm’s performance, dividend payout ratio, Bangladesh

Abstract: The purpose of this study is to examine the impact of dividend policy on the firm’s performance. Based on the data of Textile, Pharmaceuticals, Food & Allied, Cement, Tannery, Fuel & Power, Jute, Ceramics, IT Sector and Telecommunication sector, the study was implemented for the 2011-2018 period. Independent variables (Dividend Policy, Dividend Payout Ratio) along with several control variables (Leverage, Growth of Sales, Firm Size and Age of Business) were run over the dependent variables (ROA, ROE) to conclude this statement. Pooled OLS regression was introduced for testing the hypotheses. The empirical result showed that there is a positive association between dividend policy and firm performance.