Determinants of Target Dividend Payout Ratio: A Panel ARDL Analysis

Determinants of Target Dividend Payout Ratio: A Panel ARDL Analysis

Blog Article

The aim of this study is to find out the determinants of target dividend payout ratio of BIST-listed firms operating in the non-metallic products (cement) manufacturing industry in the period of 2002-2012.Through this aim, the short and long-run effects of factors related to profitability, liquidity, growth, risk, market expectations and taxation on target dividend payout ratio Food Service:Commercial Kitchen Equipment:Cooking Equipment:Tilt Skillets/Braising Pans is analyzed via panel ARDL methodology.Empirical findings indicate that in Color Additive the long-run, factors related to profitability, growth and corporate taxation significantly affect target dividend payout ratio negatively; while factors related to risk and market expectations have statistically significant and positive effects on target dividend payout ratio.Additionally, in the short-run only profitability seems to have statistically significant and positive effect on the dependent variable.

Keywords: Target Dividend Payout Ratio; Dividend Payout Policy; Panel ARDL Methodology.JEL Classifications: C33; G35; L61.