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Impact of firm specific varibles on dividend payout of Nepalese / Mani Manandhar
Title : Impact of firm specific varibles on dividend payout of Nepalese Material Type: printed text Authors: Mani Manandhar, Author Publication Date: 2016 Pagination: 98p. Size: GRP/Thesis Accompanying material: 4/B General note: Including bibilography Languages : English Descriptors: Dividend policy
DividendsKeywords: 'dividend policy dividends banking' Class number: 332.632 Abstract: Dividend policy is the determination of the proportion of profits paid out to shareholders by the enterprise usually periodically. Firms are faced with dilemma of sharing dividend to stockholders and retaining their earning with the view to reinvesting it back into the business so as to promote further growth of the business. It is controversial topic that what and how much to pay dividend because shareholders always expect higher dividend, but the firm ensures towards setting aside funds for maximizing the shareholders wealth (Dickens, Casey, & Newman, 2002). In the Nepalese context, the declaration and payment of dividend of the enterprises are governed by company act 2006.
The review of the literature reveals the existence of many gaps of knowledge in respect of the firm specific factors affecting dividend payout, particularly in the context of Nepal. The review showed that there is a consensus amongst the academia that there is no single universal explanation that can shed light on the dividend phenomenon and the determinants driving the payout decisions of firms. The literature on dividend policy had produced a large body of theoretical and empirical studies, especially following the publication of the dividend irrelevance hypothesis of Miller & Modigliani (1961). Moreover, the literature review also reveals the existence of controversial conclusions that results from different studies made so far.
Both primary and secondary data have been used for the purpose of the study which is collected from primary questionnaire survey and annual reports of the sample banks respectively. The primary sources of data have been used to assess the opinion of respondents with respect to impact of firm specific variable on dividend payout. The questionnaire survey has been conducted to record the opinions, and perceptions of bank employees in firm specific factors affecting Nepalese dividend payout policy. Primary data has been collected through questionnaire survey among bank employees of the sample banks while 7 years data from 2007/08 to 2013/14 has been collected from various secondary sources like annual reports of sample banks and consolidated financial reports prepared by Nepal Rastra Bank. Frequency of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis, stepwise regressions have been carried out to examine the secondary data.
Based on the primary and secondary analysis of data return on assets, return on equity, earning per share, price earning ratio, net cash flow per share and size have positive relation with cash dividend per share and all variables were found statistically significant except net cash flow per share. The debt equity ratio has negative relation and statistically significant with cash dividend per share at 1 percent significant level. The regression result also shows that only return on equity, price earnings ratio, debt equity ratio and size were found to be statistically significant with total dividend per share. The return on equity, price earnings ratio and size were found to be positively significant whereas debt equity ratio is found to be negatively significant with total dividend per share. Based on result from primary data, earning per share, risk, return on equity, liquidity, return on assets, leverage, and size as the important factors affecting dividends in order of their respective rank from most important to least important. It is found that dividend decision has a high level of importance and the reason behind this is that it affects growth of bank and has signaling effects on shareholders. As the dividend decision holds high importance in bank and in order to make dividend decision bank also conduct studies about shareholder’s dividend preference as payout policy of the bank affects its share price.
The recommendation made by this study suggests that the investor should invest in the bank that has higher profitability, adequate liquidity and bigger size firm in order to earn more dividends. The study also suggests that investor in order to earn dividend should invest in bank that has less risk and have low leverage ratio. The banks are recommended to carry out studies on shareholder’s dividend preference in order to better understand the preference of shareholders as well. Also Nepalese banks should give consideration to return on equity, earning per share and firm size when they set dividend policy as they are found to be the most significant variables that affect dividend payout of banksImpact of firm specific varibles on dividend payout of Nepalese [printed text] / Mani Manandhar, Author . - 2016 . - 98p. ; GRP/Thesis + 4/B.
Including bibilography
Languages : English
Descriptors: Dividend policy
DividendsKeywords: 'dividend policy dividends banking' Class number: 332.632 Abstract: Dividend policy is the determination of the proportion of profits paid out to shareholders by the enterprise usually periodically. Firms are faced with dilemma of sharing dividend to stockholders and retaining their earning with the view to reinvesting it back into the business so as to promote further growth of the business. It is controversial topic that what and how much to pay dividend because shareholders always expect higher dividend, but the firm ensures towards setting aside funds for maximizing the shareholders wealth (Dickens, Casey, & Newman, 2002). In the Nepalese context, the declaration and payment of dividend of the enterprises are governed by company act 2006.
The review of the literature reveals the existence of many gaps of knowledge in respect of the firm specific factors affecting dividend payout, particularly in the context of Nepal. The review showed that there is a consensus amongst the academia that there is no single universal explanation that can shed light on the dividend phenomenon and the determinants driving the payout decisions of firms. The literature on dividend policy had produced a large body of theoretical and empirical studies, especially following the publication of the dividend irrelevance hypothesis of Miller & Modigliani (1961). Moreover, the literature review also reveals the existence of controversial conclusions that results from different studies made so far.
Both primary and secondary data have been used for the purpose of the study which is collected from primary questionnaire survey and annual reports of the sample banks respectively. The primary sources of data have been used to assess the opinion of respondents with respect to impact of firm specific variable on dividend payout. The questionnaire survey has been conducted to record the opinions, and perceptions of bank employees in firm specific factors affecting Nepalese dividend payout policy. Primary data has been collected through questionnaire survey among bank employees of the sample banks while 7 years data from 2007/08 to 2013/14 has been collected from various secondary sources like annual reports of sample banks and consolidated financial reports prepared by Nepal Rastra Bank. Frequency of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis, stepwise regressions have been carried out to examine the secondary data.
Based on the primary and secondary analysis of data return on assets, return on equity, earning per share, price earning ratio, net cash flow per share and size have positive relation with cash dividend per share and all variables were found statistically significant except net cash flow per share. The debt equity ratio has negative relation and statistically significant with cash dividend per share at 1 percent significant level. The regression result also shows that only return on equity, price earnings ratio, debt equity ratio and size were found to be statistically significant with total dividend per share. The return on equity, price earnings ratio and size were found to be positively significant whereas debt equity ratio is found to be negatively significant with total dividend per share. Based on result from primary data, earning per share, risk, return on equity, liquidity, return on assets, leverage, and size as the important factors affecting dividends in order of their respective rank from most important to least important. It is found that dividend decision has a high level of importance and the reason behind this is that it affects growth of bank and has signaling effects on shareholders. As the dividend decision holds high importance in bank and in order to make dividend decision bank also conduct studies about shareholder’s dividend preference as payout policy of the bank affects its share price.
The recommendation made by this study suggests that the investor should invest in the bank that has higher profitability, adequate liquidity and bigger size firm in order to earn more dividends. The study also suggests that investor in order to earn dividend should invest in bank that has less risk and have low leverage ratio. The banks are recommended to carry out studies on shareholder’s dividend preference in order to better understand the preference of shareholders as well. Also Nepalese banks should give consideration to return on equity, earning per share and firm size when they set dividend policy as they are found to be the most significant variables that affect dividend payout of banksHold
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Barcode Call number Media type Location Section Status 169/D 332.632 MAN Thesis/Dissertation Uniglobe Library Social Sciences Available Impact of ownership structure on dividend policy of Nepalese commercial banks / Pooja Neupane
Title : Impact of ownership structure on dividend policy of Nepalese commercial banks Material Type: printed text Authors: Pooja Neupane, Author Publication Date: 2018 Pagination: 89p. Size: GRP/Thesis Accompanying material: 11/B Languages : English Descriptors: Dividends Class number: 332.632 Abstract: Despite of several empirical evidences, the dividend policy issues are still puzzling and unresolved. Identification of the factors shaping the dividend payouts decisions is crucial for the corporate managers and it is even more crucial in banking sector especially in case of Nepal because most of the investors in the capital market invest in the shares of the banks. So, the empirical relationship between the dividend payouts and its determinants are stated as the research questions followed by the development of the hypotheses. The major objective of this study is to analyze the impact of ownership structure on dividend policy decisions of the commercial bank along with the examination of empirical relationship between them.
The major objective of the study is to determine the ownership factors affecting the dividend policy of Nepalese commercial banks. The study is based on secondary data of 15 commercial banks with 135 observations for the period of 2008 to 2016. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. For the representation of more reliable and adequate population in the sample, random sampling technique has been used in this study. The research design adopted in this study is descriptive research design.
The result shows that SCBL has highest average foreign ownershipof 75.00 percent and NIBL has highest institution ownership of 77.45 percentamong the selected commercial banks throughout the study period. Similarly, NIBL has highest average total assets of Rs. 74084.08 million percent, BOK has highest average leverage of 91.00 percent and NIBL has highest average ownership concentration of 50.89 percent.
The descriptive statistics shows that the average value of foreign ownership is 17.22 percent, institution ownership is 23.65 percent, total assets are 37744.79 million rupees, return on equity is 18.28 percent, ownership concentration is 21.57 percent and leverage is 86.48 percent. In same way, average value of liquidity is 10.81 percent. In one hand, average percentage of dividend per share is Rs. 23.65 and the average percentage of dividend payout ratio is 81.81 percent.
Among the ownership variables, the highest positive and significant correlation coefficient is recorded between dividend payout ratio and foreign ownership. The dividend payout ratio is also positively related with ROE and Size. The correlation between liquidity and dividend payout ratio is negative. Unlike others, institution ownership, ownership concentration and leverage are statistically insignificant with liquidity. Similarly, among the determinants of ownership variables of dividend per share, the highest positive and significant correlation coefficient is recorded between dividend per share and return on equity. Dividends per shares are also positively correlated with foreign ownership, institution ownership, ownership concentration, size and leverage. Similarly, the correlation between size and dividend per share is second higher in magnitude.
The regression results for dividend per share (DPS) shows that the beta coefficients for total assets, foreign ownership and return on equity are positive in all the equations. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity. Similarly, higher the liquidity, lower would be the dividend per share as the negative coefficients have been observed for liquidity. Similarly, the regression results for dividend payout ratio shows the beta coefficients for foreign ownership, return on equity and size are positive. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity.
Impact of ownership structure on dividend policy of Nepalese commercial banks [printed text] / Pooja Neupane, Author . - 2018 . - 89p. ; GRP/Thesis + 11/B.
Languages : English
Descriptors: Dividends Class number: 332.632 Abstract: Despite of several empirical evidences, the dividend policy issues are still puzzling and unresolved. Identification of the factors shaping the dividend payouts decisions is crucial for the corporate managers and it is even more crucial in banking sector especially in case of Nepal because most of the investors in the capital market invest in the shares of the banks. So, the empirical relationship between the dividend payouts and its determinants are stated as the research questions followed by the development of the hypotheses. The major objective of this study is to analyze the impact of ownership structure on dividend policy decisions of the commercial bank along with the examination of empirical relationship between them.
The major objective of the study is to determine the ownership factors affecting the dividend policy of Nepalese commercial banks. The study is based on secondary data of 15 commercial banks with 135 observations for the period of 2008 to 2016. The main source of data include various issues of Banking and Financial Statistics, Quarterly Economic Bulletin, Bank Supervision Report published by Nepal Rastra Bank and Annual Reports of selected commercial banks. For the representation of more reliable and adequate population in the sample, random sampling technique has been used in this study. The research design adopted in this study is descriptive research design.
The result shows that SCBL has highest average foreign ownershipof 75.00 percent and NIBL has highest institution ownership of 77.45 percentamong the selected commercial banks throughout the study period. Similarly, NIBL has highest average total assets of Rs. 74084.08 million percent, BOK has highest average leverage of 91.00 percent and NIBL has highest average ownership concentration of 50.89 percent.
The descriptive statistics shows that the average value of foreign ownership is 17.22 percent, institution ownership is 23.65 percent, total assets are 37744.79 million rupees, return on equity is 18.28 percent, ownership concentration is 21.57 percent and leverage is 86.48 percent. In same way, average value of liquidity is 10.81 percent. In one hand, average percentage of dividend per share is Rs. 23.65 and the average percentage of dividend payout ratio is 81.81 percent.
Among the ownership variables, the highest positive and significant correlation coefficient is recorded between dividend payout ratio and foreign ownership. The dividend payout ratio is also positively related with ROE and Size. The correlation between liquidity and dividend payout ratio is negative. Unlike others, institution ownership, ownership concentration and leverage are statistically insignificant with liquidity. Similarly, among the determinants of ownership variables of dividend per share, the highest positive and significant correlation coefficient is recorded between dividend per share and return on equity. Dividends per shares are also positively correlated with foreign ownership, institution ownership, ownership concentration, size and leverage. Similarly, the correlation between size and dividend per share is second higher in magnitude.
The regression results for dividend per share (DPS) shows that the beta coefficients for total assets, foreign ownership and return on equity are positive in all the equations. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity. Similarly, higher the liquidity, lower would be the dividend per share as the negative coefficients have been observed for liquidity. Similarly, the regression results for dividend payout ratio shows the beta coefficients for foreign ownership, return on equity and size are positive. The negative coefficients have been observed for institution ownership, ownership concentration, leverage and liquidity.
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Barcode Call number Media type Location Section Status 413/D 332.632 NEU Books Uniglobe Library Social Sciences Available