Browsing by Author "ANANE, ESTHER"

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    The determinants of dividend policy in Ghana: evidence from the Ghana stock exchange.
    (KNUST, 2016-08) ANANE, ESTHER
    Dividend payment is one of the main factors that drive shareholders to invest capital in business. This study seeks to find the determinants of dividend policy of listed companies on Ghana. To achieve this objective Panel data covering 2013/2014 financial year for 20 listed companies on Ghana Stock Exchange were sampled. The study adopted a quantitative method and used mainly secondary data. The study analyses a range of determinants of dividend payout: firm leverage (LEV), Liquidity (LIQ), firm size (SIZE) profitability (PROF), Taxation (TAX), Growth and Tangibility (TANG). Ordinary Least Square Regression analysis is carried out to assess the main effect of the determinants of the dividend payout. Firm leverage (LEV), Liquidity (LIQ), firm size (SIZE) profitability (PROF), Taxation (TAX), Growth and Tangibility (TANG) can predict about 40% of dividend payout. The regression results also reveal that, firm’s growth, firm’s profitability, liquidity and corporate tax associate positively with dividend payment. The descriptive statistics indicates that, on average of about 75% of the listed firms on GSE have a policy to pay dividend with average dividend pay ratio been 28%. The study provides evidence that profitability, liquidity and growth are the most important factors that affect dividend policy of companies in Ghana. So, companies should give consideration to profitability, liquidity and growth when they set dividend policy