Factors Influencing Dividend Policy: Companies Listed in Sri Lanka
Abstract
The behavior of the dividend policy is the most debatable issue in the corporate finance. Many researchers try to expose the issue regarding the dividend behavior or dynamics and determinants of dividend policy but still do not have an acceptable description for the observed dividend behavior of firms. Therefore, the present research focused on analysis the factors influencing dividend policy of listed companies in Sri Lanka. The investigation was performed using panel data procedures for a sample of 120 listed companies in Colombo Stock Exchange during 2015 – 2019. Secondary data collected from annual reports published by the Colombo Stock Exchange was regressed to find the influence on dividend policy. The findings revealed that the current earnings, free cash flow and past dividend patterns have significant positive influence on dividend policy on listed companies in Sri Lanka. Operating cash flow has significant negative influence on dividend policy in listed companies in Sri Lanka. Findings will be benefited to the directors, top level managers, shareholders and potential investors for their decision making.
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References
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