A study on the determinants of dividend policies of publicly listed firms for the period 2000-2009

• Main Authors: Balinas, Paolo Luigi, Capanas, Ching-Ching Jamie, Eje, Therese Katrine, Sanchez, Rona Carmela
• Format: text
• Language: English
• Published: Animo Repository 2010
• Subjects: Dividends > Philippines; Financial institutions > Management; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18504
• Institution: De La Salle University

Through the years, a firm's dividend policy has been the focus of various studies not only for the developed markets but also in the emerging ones. In this paper the influences of firm-specific factors and institutional structures on dividend policies of corporations listed in the Philippine Stock Exchange (PSE) were determined, to observe if such relationship exist. In order to measure the degree and direction of the said relationship, descriptive research design was used to assess the characteristics and patterns of the variables across the various industries. Through stratified random sampling, the sample size of 54 firms was obtained. The data used in the study were secondary sources such as annual reports, PSE fact books, dividend disclosures, and daily closing prices of stocks and PSEi were obtained from the PSE. The primary software used in this study is Gretl. The study used panel data or pooled data in the analysis of the dividend policy patterns of the selected listed firms over a period of time. In the intiial regression using the ordinary least square as the regression technique, there were no significant variables. However, after using the HAC robustness standard errors function in Gretl, growth rate and leverage were the only variables that appeared to be statistically significant in influencing a company's dividend payout. Given this result, the proponents also provided analysis to asset ratio, and dividend to equity ratio to take into account the differences in the dividend policy equations. Based on the results, it can be seen that it is influenced by other factors that are not quantifiable.