Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study

Mohamed Masry; Ahmed Sakr; Marwan Amer

doi:doi:10.11648/j.ijefm.20180604.12

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Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study

Mohamed Masry, Ahmed Sakr, Marwan Amer

Published in International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 4)

Received: 20 May 2018 Accepted: 19 June 2018 Published: 7 July 2018

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Abstract

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.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 6, Issue 4)
DOI	10.11648/j.ijefm.20180604.12
Page(s)	139-152
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2018. Published by Science Publishing Group

Keywords

Dividend Policy, Emerging Capital Markets (ECM’s), Profitability, Egyptian Stock Exchange

References

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APA Style

Mohamed Masry, Ahmed Sakr, Marwan Amer. (2018). Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. International Journal of Economics, Finance and Management Sciences, 6(4), 139-152. https://doi.org/10.11648/j.ijefm.20180604.12

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ACS Style

Mohamed Masry; Ahmed Sakr; Marwan Amer. Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. Int. J. Econ. Finance Manag. Sci. 2018, 6(4), 139-152. doi: 10.11648/j.ijefm.20180604.12

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AMA Style

Mohamed Masry, Ahmed Sakr, Marwan Amer. Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. Int J Econ Finance Manag Sci. 2018;6(4):139-152. doi: 10.11648/j.ijefm.20180604.12

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@article{10.11648/j.ijefm.20180604.12,
  author = {Mohamed Masry and Ahmed Sakr and Marwan Amer},
  title = {Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {6},
  number = {4},
  pages = {139-152},
  doi = {10.11648/j.ijefm.20180604.12},
  url = {https://doi.org/10.11648/j.ijefm.20180604.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180604.12},
  abstract = {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.},
 year = {2018}
}

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TY  - JOUR
T1  - Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study
AU  - Mohamed Masry
AU  - Ahmed Sakr
AU  - Marwan Amer
Y1  - 2018/07/07
PY  - 2018
N1  - https://doi.org/10.11648/j.ijefm.20180604.12
DO  - 10.11648/j.ijefm.20180604.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 139
EP  - 152
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20180604.12
AB  - 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.
VL  - 6
IS  - 4
ER  -

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Author Information

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

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APA Style

Mohamed Masry, Ahmed Sakr, Marwan Amer. (2018). Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. International Journal of Economics, Finance and Management Sciences, 6(4), 139-152. https://doi.org/10.11648/j.ijefm.20180604.12

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ACS Style

Mohamed Masry; Ahmed Sakr; Marwan Amer. Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. Int. J. Econ. Finance Manag. Sci. 2018, 6(4), 139-152. doi: 10.11648/j.ijefm.20180604.12

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AMA Style

Mohamed Masry, Ahmed Sakr, Marwan Amer. Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study. Int J Econ Finance Manag Sci. 2018;6(4):139-152. doi: 10.11648/j.ijefm.20180604.12

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@article{10.11648/j.ijefm.20180604.12,
  author = {Mohamed Masry and Ahmed Sakr and Marwan Amer},
  title = {Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {6},
  number = {4},
  pages = {139-152},
  doi = {10.11648/j.ijefm.20180604.12},
  url = {https://doi.org/10.11648/j.ijefm.20180604.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20180604.12},
  abstract = {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.},
 year = {2018}
}

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TY  - JOUR
T1  - Factors Affecting Dividend Policyin an Emerging Capital Markets (ECM’s) Country: Theoratical and Empirical Study
AU  - Mohamed Masry
AU  - Ahmed Sakr
AU  - Marwan Amer
Y1  - 2018/07/07
PY  - 2018
N1  - https://doi.org/10.11648/j.ijefm.20180604.12
DO  - 10.11648/j.ijefm.20180604.12
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 139
EP  - 152
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20180604.12
AB  - 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.
VL  - 6
IS  - 4
ER  -

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