An Empirical Investigation of Corporate Dividend Payout Policy in an Emerging Market: Evidence from Palestine Securities Exchange
An Empirical Investigation of Corporate Dividend Payout Policy in an Emerging Market: Evidence from Palestine Securities Exchange
Date
2016-07-05
Authors
Aqel, Saher
Journal Title
Journal ISSN
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Publisher
International Knowledge Sharing Platform
Abstract
This manuscript aims at investigating factors that affect corporate dividend policy of the listed companies on
Palestine Securities Exchange. For this purpose, the study considers the impact of six explanatory determinants
namely, firm’s size, profitability, risk, leverage, liquidity and growth opportunities by using balanced panel
dataset of Palestinian listed firms between the years 2009 and 2013. The sample which was investigated is
composed of 24 listed and traded companies as of December 2013. Descriptive analysis, multicollinearity
analysis and multiple regression analysis were used to test the model of the study. Empirical findings show that
that growth, risk, and profitability explanatory variables have positive and statistically significant association
with dividends payout ratio. Furthermore, the results indicate that the firm size and leverage ratio factors were
found to have statistically no significant relationship with dividends payout ratio. Liquidity appeared to have a
negative association with dividends payout but not statistically significant.
Description
Keywords
Dividend Payout Policy, Palestine Securities Exchange