| 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.
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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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