Volume 6, Issue 4, August 2018, Page: 139-152
Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study
Mohamed Masry, Department of Accounting and Finance, College of Management and Technlogy, Arab Academy for Science and Technology (AAST), Alexandria, Egypt
Ahmed Sakr, Department of Accounting and Finance, College of Management and Technlogy, Arab Academy for Science and Technology (AAST), Alexandria, Egypt
Marwan Amer, Department of Accounting and Finance, College of Management and Technlogy, Arab Academy for Science and Technology (AAST), Alexandria, Egypt
Received: May 20, 2018;       Accepted: Jun. 19, 2018;       Published: Jul. 7, 2018
DOI: 10.11648/j.ijefm.20180604.12      View  1001      Downloads  160
The dividend decision is taken after careful consideration of a number of factors, such as legal and financial. This is because it is impossible to develop a dividend policy set that applies to all companies. The decision about dividends differs from company to company in the light of company considerations. The dividend is partly dependent on the current earning of the company and partly on the dividend from the previous year. Therefore, the main changes in profit with the existing rate of dividends were the main determinants of corporate dividend policy. The research showed that the profitability aspects and their indicators for each of the return on equity return on asset, and earning per share without dividend yield, have the greatest impact on share price performance, followed by the financial risks aspect of financial leverage without gains variation which comes in the second rank. Then, the factor of size, investment opportunity for each of investment opportunity and net profit standard deviation without assets volume comes in the third place and finally, the liquidity and signals factor represented in the cash ratio without signals index. While the profitability aspects and its indicators for each of the return on equity, return on asset, earning per share without dividend yield are the most effective on pay-out ratio (first rank), followed by financial risks aspect and gains variation coefficient without financial leverage in the second rank, then the liquidity factor of index without the signals in the third place and finally size and investment opportunity factor for each of investment opportunity and assets volume without net profit standard deviation.
Dividend Policy, Emerging Capital Markets (ECM’s), Profitability, Egyptian Stock Exchange
To cite this article
Mohamed Masry, Ahmed Sakr, Marwan Amer, Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study, International Journal of Economics, Finance and Management Sciences. Vol. 6, No. 4, 2018, pp. 139-152. doi: 10.11648/j.ijefm.20180604.12
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