Determinants of dividend payout ratio
This paper studies the determinants of the dividends payout ratio. The factors affecting the dividends payout ratio are to be identified. The study focuses only on the cement and construction industry within the MENA region in an attempt to isolate any incoherent behavior. The factors under consider...
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2014
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| Online Access: | http://hdl.handle.net/10725/7292 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/profile/Thilini_Gamage2/publication/306281419_Internet-Mediated_Market_Orientation_and_Its_Determinants_Empirical_Evidence_from_Sri_Lanka/links/57b657a008aeaab2a104feaa.pdf#page=75 |
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| _version_ | 1864513481820078080 |
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| author | Elgammal, Walid |
| author_facet | Elgammal, Walid |
| author_role | author |
| dc.contributor.none.fl_str_mv | Rehman, Atiq Ehsan, Usman |
| dc.creator.none.fl_str_mv | Elgammal, Walid |
| dc.date.none.fl_str_mv | 2014 2018-03-29T08:49:07Z 2018-03-29T08:49:07Z 2018-03-29 |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10725/7292 Elgammal, W. (2014, September). Determinants of Dividend Payout Ratio: Evidence form MENA region. In Third Asian Business Research Conference (p. 65). http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/profile/Thilini_Gamage2/publication/306281419_Internet-Mediated_Market_Orientation_and_Its_Determinants_Empirical_Evidence_from_Sri_Lanka/links/57b657a008aeaab2a104feaa.pdf#page=75 |
| dc.language.none.fl_str_mv | en |
| dc.publisher.none.fl_str_mv | Asian Society of Management & Marketing Research |
| dc.rights.*.fl_str_mv | info:eu-repo/semantics/openAccess |
| dc.title.none.fl_str_mv | Determinants of dividend payout ratio evidence form MENA region |
| dc.type.none.fl_str_mv | Conference Paper / Proceeding info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/conferenceObject |
| description | This paper studies the determinants of the dividends payout ratio. The factors affecting the dividends payout ratio are to be identified. The study focuses only on the cement and construction industry within the MENA region in an attempt to isolate any incoherent behavior. The factors under consideration are: Sales Growth, ROE, ROA, ROS, Debt to Equity Ratio, Firm Size, and Free Cash Flow. Data were collected from official stock exchange markets in addition to annual reports. The study considered all firms that paid dividend in each of the three consecutive years starting from 2010 till 2012. Out of the 123 listed firms that work in cement and construction industry in MENA region, only 19 paid dividends in the three consecutive years 2010-12. Our sample consists of the 19 firms (57 observations) is selected according to purposive sampling. Moreover, the study uses the homogeneous subcategory within the purposive sampling since only similar firms in construction industry had been examined. The outcome of the study provides a vital insight into the determinants of dividends payout ratio of companies in MENA region. The results showed that the Dividend Payout Ratio has a strong and positive relationship with Return on assets and strong but negative relationship with Return on Equity. On the other hand, the results detected weak relationships between Dividend Payout Ratio and Sale Growth, Debt to Equity Ratio, Firm size, and Free Cash Flow. The study suggests that board of directors tend to compensate shareholders and minimize the agency cost by distributing a high portion of profits in form of dividends whenever return on equity decreases. Also, when the performance of the firm improves, and hence return on assets increases, boards of directors are more generous in distributing profits. |
| eu_rights_str_mv | openAccess |
| format | conferenceObject |
| id | LAURepo_ddbfc78462f291ac003cd81fc8af6773 |
| identifier_str_mv | Elgammal, W. (2014, September). Determinants of Dividend Payout Ratio: Evidence form MENA region. In Third Asian Business Research Conference (p. 65). |
| language_invalid_str_mv | en |
| network_acronym_str | LAURepo |
| network_name_str | Lebanese American University repository |
| oai_identifier_str | oai:laur.lau.edu.lb:10725/7292 |
| publishDate | 2014 |
| publisher.none.fl_str_mv | Asian Society of Management & Marketing Research |
| repository.mail.fl_str_mv | |
| repository.name.fl_str_mv | |
| repository_id_str | |
| spelling | Determinants of dividend payout ratioevidence form MENA regionElgammal, WalidThis paper studies the determinants of the dividends payout ratio. The factors affecting the dividends payout ratio are to be identified. The study focuses only on the cement and construction industry within the MENA region in an attempt to isolate any incoherent behavior. The factors under consideration are: Sales Growth, ROE, ROA, ROS, Debt to Equity Ratio, Firm Size, and Free Cash Flow. Data were collected from official stock exchange markets in addition to annual reports. The study considered all firms that paid dividend in each of the three consecutive years starting from 2010 till 2012. Out of the 123 listed firms that work in cement and construction industry in MENA region, only 19 paid dividends in the three consecutive years 2010-12. Our sample consists of the 19 firms (57 observations) is selected according to purposive sampling. Moreover, the study uses the homogeneous subcategory within the purposive sampling since only similar firms in construction industry had been examined. The outcome of the study provides a vital insight into the determinants of dividends payout ratio of companies in MENA region. The results showed that the Dividend Payout Ratio has a strong and positive relationship with Return on assets and strong but negative relationship with Return on Equity. On the other hand, the results detected weak relationships between Dividend Payout Ratio and Sale Growth, Debt to Equity Ratio, Firm size, and Free Cash Flow. The study suggests that board of directors tend to compensate shareholders and minimize the agency cost by distributing a high portion of profits in form of dividends whenever return on equity decreases. Also, when the performance of the firm improves, and hence return on assets increases, boards of directors are more generous in distributing profits.N/AAsian Society of Management & Marketing ResearchRehman, AtiqEhsan, Usman2018-03-29T08:49:07Z2018-03-29T08:49:07Z20142018-03-29Conference Paper / Proceedinginfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/conferenceObjecthttp://hdl.handle.net/10725/7292Elgammal, W. (2014, September). Determinants of Dividend Payout Ratio: Evidence form MENA region. In Third Asian Business Research Conference (p. 65).http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.phphttps://www.researchgate.net/profile/Thilini_Gamage2/publication/306281419_Internet-Mediated_Market_Orientation_and_Its_Determinants_Empirical_Evidence_from_Sri_Lanka/links/57b657a008aeaab2a104feaa.pdf#page=75eninfo:eu-repo/semantics/openAccessoai:laur.lau.edu.lb:10725/72922021-03-19T09:10:16Z |
| spellingShingle | Determinants of dividend payout ratio Elgammal, Walid |
| status_str | publishedVersion |
| title | Determinants of dividend payout ratio |
| title_full | Determinants of dividend payout ratio |
| title_fullStr | Determinants of dividend payout ratio |
| title_full_unstemmed | Determinants of dividend payout ratio |
| title_short | Determinants of dividend payout ratio |
| title_sort | Determinants of dividend payout ratio |
| url | http://hdl.handle.net/10725/7292 http://libraries.lau.edu.lb/research/laur/terms-of-use/articles.php https://www.researchgate.net/profile/Thilini_Gamage2/publication/306281419_Internet-Mediated_Market_Orientation_and_Its_Determinants_Empirical_Evidence_from_Sri_Lanka/links/57b657a008aeaab2a104feaa.pdf#page=75 |