Assessing the impact of firm maturity and financial leverage on dividend policy: A case in the publicly-listed firms from the manufacturing and telecommunication industry of the ASEAN five

• Main Authors: Castilo, Mikaela Valerie S., Hung, Claribel Jane P., Maristela, Astin Andrea J., Sulit, Michelle Faye D.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Financial leverage > Philippines; Dividends > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/7693
• Institution: De La Salle University

Dividend policy has stood to play an important role for firms, where it served as a tool to relay information to investors and stakeholders regarding a firm's value and performance. As of the present, there has been limited literature studying the determinants of dividend policies and its impact in the ASEAN-5. Using panel regression, this paper aims to determine the impact of firm maturity and financial leverage on dividend policy in the manufacturing and telecommunication industry of the ASEAN-5 countries and the ASEAN, as an integrated economy, through the years 2009-2013. The findings of this study suggest that firm age is irrelevant and not substantial in determining dividend policy in all ASEAN-5 countries, while financial leverage is only negatively significant as a determinant for dividend policy in Thailand and Indonesia. Furthermore, empirical evidence on the ASEAN, as an integrated economy, suggests that there exists a significant negative impact on dividend payouts only at a certain business cycle of a firm where there is tight rivalry. Moreover, financial leverage in the ASEAN was also found to be significantly negative in determining the dividend policy.