DIVIDEND PRACTICES IN LISTED BANKS OF BANGLADESH

Mohammad Shahidul Islam

DOI: http://dx.doi.org/10.12775/CJFA.2018.008

Abstract


Corporate dividend behaviour is looked upon in many ways by the experts in the area of financial literature. To examine the dividend practices in banking sector in Bangladesh, it is taken secondary data and the views of dividend policy makers’ covering the divergent aspects of dividend practices. The parametric test, non-parametric test and percentile are used for inferring the result. In the banking sector, the maximum payouts are in large size firm, earlier listed bank, low leveraged firm, high risk’s firm, medium PE ratio’s firm. The survey results reveal that the banks prefer both cash & stock dividend most but majority shareholders prefer stock. The most of the companies follow stable payout with increasing trend in dividend payment but no satisfactory research is done to justify the investors’ preference. The decision maker, investors and other stakeholders should follow these findings for taking decision.

Keywords


dividend; EPS; signaling theory; MM model

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