Abstract:
Purpose - This paper aims at investigating the factors determining the dividend payout
policy in the Lebanese banks listed on the Beirut Stock Exchange.
Methodology - To achieve this objective, this study considers the impact of seven
variables, namely, profitability, liquidity, leverage, firm size, growth, firm risk and
previous year's dividend payout on the dividend payout ratios by using an unbalanced
panel dataset of audited financial statement of listed banks between the years of 2005
and 2011. Two models were tested and seven hypotheses were investigated using the
OLS and the dynamic panel regressions.
Findings - Empirical results show that the dividend payout policies are positively
affected by the firm size, risk and previous year's dividends, but are negatively affected
to the opportunity growth and profitability. The results obtained might indicate that
firms pay dividends with the intention of reducing the agency conflicts. Furthermore,
managers take into consideration the stability of dividends while determining the
dividend policy. However, the variables that are negatively significant indicate that the
Lebanese listed firms prefer to invest their earnings aiming to grow their institutions
rather than to pay more dividends.
Research limitations - The small sample size with a short time frame and limited
resources could have affected the quality of the study's output.
Practical Implications - Researchers and investors could use this study as a benchmark
for further research and future investments.
Originality - This study has delivered some insights on the determinant factors of the
dividend policy in the Lebanese listed banks.
Description:
M.B.A. and M.I.B. -- Faculty of Business Administration and Economics, Notre Dame University, Louaize and Bordeaux Business School Institute of International Business, 2013; "A thesis submitted in partial fulfillment of the requirements for the joint degree of the Master of Business Administration (M.B.A.) and the Master of Science in International Business (M.I.B.)."; Includes bibliographical references (leaves 92-105).