NSU Research Contributions

Title : Did Foreign Firms in Bangladesh Pay Higher Dividend during Subprime Crisis? An Investigation

Authors : Sharif N. Ahkam, Shahzada M. Imran, and Syeda Marjia Hossain

Abstract : The main purpose of this paper is to investigate whether foreign firms in Bangladesh paid higher dividend during sub-prime crisis. A balanced panel data set of fifty-five non-financial firms (nine foreign and 46 local) of Bangladesh for 10 (2002-2011) years from the Dhaka Stock Exchange is used for this study. The specified model that has the cash dividend payout as the dependent variable and profitability, external shareholding, growth in GDP, and two dummy variables (one to indicate foreign firms and the other to indicate sub-prime crisis period) as the explanatory variables. Newey-West estimator is used to estimate the regression equation. Profitability, external shareholding, gdp growth and the dummy variable for foreign firms turned out to be significant. In addition, stability test based on recursive estimation (recursive least squares) was used to visually check for structural break in recursive coefficient graphs. No structural break was found indicating no significant change in dividend payout pattern of foreign firms around sub-prime crisis.

Journal :	Volume :	Year : 2013	Issue :
Pages : 76-82	City : Kuala Lumpur, Malaysia	Edition :	Editors :
Publisher : Journal of Advanced management Science	ISBN :	Book :	Chapter :
Proceeding Title : 3rd International Conference on Economics and Finance Research	Institution :	Issuer :	Number :