Title :	Factors affecting dividend payout in Nepalese commercial banks
Material Type:	printed text
Authors:	Shilpa Shrestha, Author
Publication Date:	2016
Pagination:	89p.
Size:	GRP/Thesis
Accompanying material:	7/B
Languages :	English
Descriptors:	Dividends
Class number:	332.632
Abstract:	Dividend is the return from investment in equity shares. It is the profit made by the firm which is distributed to the shareholders. Firms view dividend policy very important because it determines what funds flow to investors and what funds are retained by the firm for reinvestment. Shareholders always look at the capability of the companies to initiate a dividend. The decisions of the firm regarding how much earnings could be paid out as dividend and how much could be retained is the concern of dividend policy decision (Alzomaia & Al-Khadhiri, 2013). DeAngelo and DeAngelo (2006) revealed that optimal payout policy is driven by the need to distribute the firm’s free cash flow. The study stated that, firms optimally alter dividends through time in response to evolution of their investment opportunity set. The principle factor that contributes to deviations from the optimal payout ratio is due changes in the company’s profit, and if the profit increases the dividend payout should increase in same proportions (Meyers & Bacon, 2004). The major purpose of this study is to analyze the determinants of dividend payout in Nepalese commercial banks. Other specific objectives of the study are: (a) to examine the structure and pattern of return on assets, net worth, dividend yield, retain earning, earning per share, debt-equity ratio and size. (b) to find out the relationship between return on assets and dividend payout. (c) to determine the impact of net worth and retained earnings on dividend payout. (d) to examine effect of debt-equity ratio and dividend yield on dividend payout. The study is based on descriptive and causal comparative research design. The descriptive reserch design has been adopted to undertake fact-finding operation searching for adequate information about the impact of return on assets, retained earnings, debt-equity ratio, dividend yield and other variables on the dividend payout of Nepalese commercial banks. Moreover, the study also emphasizes on cause and effect relationship between dividend payout and its determinants in Nepalse context. The study is based on the secondary data which are gathered from 19 commercial banks in Nepal with 152 total number of observation for the period 2006/07- 2013/14. The main sources of data are official website of concern commercial banks, annual reports of commercial banks, Supervision Reports published by NRB and annual reports of respective commercial banks. VIII The result shows that the average dividend per share is highest for SCBL and lowest for JBL. The average market price per share is highest for SCBL and lowest for JBL. The average return on assets is highest for NABIL and lowest for JBL. The study reveals that return on assets, retained earnings, debt-equity ratio has positive relationship with divdend per share. Similarly, dividend yield, earning per share, size and net worth also has a positive relationhip with dividend per share. It indicates that return on assets, retained earnings and other variables have positive significance on dividend per share. The regression results shows that beta coefficients are positive for return on assets, retained earnings, debt-equity ratio, dividend yield, earning per share, size and net worth with dividend payout ratio. However, the beta coefficients are significant for return on assets, retained earnigns an dividend yield. Similarly, the study found that return on assets, retained earnings, debt-equity ratio, earning per share, size and net worth has positive relationship with market price per share whereas, dividend yield has negative relationship with market price per share. The major conclusion of the study is that return on assets, retained earning and dividend yield plays a significant role in determining the dividend payout of Nepalese commercial banks.

Factors affecting dividend payout in Nepalese commercial banks [printed text] / Shilpa Shrestha, Author . - 2016 . - 89p. ; GRP/Thesis + 7/B.
Languages : English

Descriptors:	Dividends
Class number:	332.632
Abstract:	Dividend is the return from investment in equity shares. It is the profit made by the firm which is distributed to the shareholders. Firms view dividend policy very important because it determines what funds flow to investors and what funds are retained by the firm for reinvestment. Shareholders always look at the capability of the companies to initiate a dividend. The decisions of the firm regarding how much earnings could be paid out as dividend and how much could be retained is the concern of dividend policy decision (Alzomaia & Al-Khadhiri, 2013). DeAngelo and DeAngelo (2006) revealed that optimal payout policy is driven by the need to distribute the firm’s free cash flow. The study stated that, firms optimally alter dividends through time in response to evolution of their investment opportunity set. The principle factor that contributes to deviations from the optimal payout ratio is due changes in the company’s profit, and if the profit increases the dividend payout should increase in same proportions (Meyers & Bacon, 2004). The major purpose of this study is to analyze the determinants of dividend payout in Nepalese commercial banks. Other specific objectives of the study are: (a) to examine the structure and pattern of return on assets, net worth, dividend yield, retain earning, earning per share, debt-equity ratio and size. (b) to find out the relationship between return on assets and dividend payout. (c) to determine the impact of net worth and retained earnings on dividend payout. (d) to examine effect of debt-equity ratio and dividend yield on dividend payout. The study is based on descriptive and causal comparative research design. The descriptive reserch design has been adopted to undertake fact-finding operation searching for adequate information about the impact of return on assets, retained earnings, debt-equity ratio, dividend yield and other variables on the dividend payout of Nepalese commercial banks. Moreover, the study also emphasizes on cause and effect relationship between dividend payout and its determinants in Nepalse context. The study is based on the secondary data which are gathered from 19 commercial banks in Nepal with 152 total number of observation for the period 2006/07- 2013/14. The main sources of data are official website of concern commercial banks, annual reports of commercial banks, Supervision Reports published by NRB and annual reports of respective commercial banks. VIII The result shows that the average dividend per share is highest for SCBL and lowest for JBL. The average market price per share is highest for SCBL and lowest for JBL. The average return on assets is highest for NABIL and lowest for JBL. The study reveals that return on assets, retained earnings, debt-equity ratio has positive relationship with divdend per share. Similarly, dividend yield, earning per share, size and net worth also has a positive relationhip with dividend per share. It indicates that return on assets, retained earnings and other variables have positive significance on dividend per share. The regression results shows that beta coefficients are positive for return on assets, retained earnings, debt-equity ratio, dividend yield, earning per share, size and net worth with dividend payout ratio. However, the beta coefficients are significant for return on assets, retained earnigns an dividend yield. Similarly, the study found that return on assets, retained earnings, debt-equity ratio, earning per share, size and net worth has positive relationship with market price per share whereas, dividend yield has negative relationship with market price per share. The major conclusion of the study is that return on assets, retained earning and dividend yield plays a significant role in determining the dividend payout of Nepalese commercial banks.