Title : Determinants of Dividend Payout Policy in a Rapidly Growing Economy: The Case of Bangladesh

Authors : Sharif Ahkam, Shahzada Imran, Marjia Hossain

Abstract : The purpose of this paper is to examine the effects of the introduction of 20 percent tax rebate in 2002 for certain firms on the dividend policy of firms potentially qualifying for this rebate in Bangladesh. A balanced panel data set of sixty-three non-financial firms of Bangladesh for 14 (1998-2011) years from the Dhaka Stock Exchange is used for this purpose. Newey-West estimator is used to estimate a logit model and the specified model uses binary values of 0 and 1 to identify if it met the tax rebate threshold. The explanatory variables are firm size, log of market value to face value ratio and profitability. A dummy variable was used to separate the pre-rebate period (2003 and before) from post-rebate period (after 2003). The dummy variable turned out to be insignificant indicating that introduction of the tax rebate had no impact on dividend policy of qualifying firms.

Journal : Volume : Year : 2013 Issue :
Pages : City : Las Vegas, USA Edition : Editors :
Publisher : ISBN : Book : Chapter :
Proceeding Title : 25th Annual Meeting of the Association of Global Business Institution : Issuer : Number :