Determinants of dividend payout ratio: a case of Polish banking sector

Ivanova, Anastasiia

Abstract

The dividend policy is one of the most important issues for the company’s management. Nowadays banks play a key role in the development of the country, its GDP growth and citizens’ wellbeing. The paying of dividends to the owners is directly connected with the strategy and further bank’s development, so it is important to understand the determinants of dividend payout ratio. The main goal of this research is to examine the factors influencing payment of cash dividends by banks in Poland. The database of the study consists the financial data for the period of 5 years (from 2014 to 2018) for 15 banks listed on the Warsaw Stock Exchange. The researcher used the ordinary least squares (OLS) regression model to explore the determinants of dividend payout ratio. The six regression models were considered. Profitability, size, leverage are negatively related with the dividend payout ratio. The liquidity, volume of previously paid dividends, cash flow and corporate tax are unimportant from the perspective of dividend policy by Polish banks.

Keywords

dividend policy (1)dividend payout ratio (1)determinants (1)financial industry (1)bank (3)

References

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Murtaza, M., Iqbal, M., Ullah, Z., Rasheed, H., and Basit, A. (2018). An Analytical Review of Dividend Policy Theories. Journal of Advanced Research in Business and Management Studies, 62–76. [Google Scholar]
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APA style

Ivanova, Anastasiia (2019). Determinants of dividend payout ratio: a case of Polish banking sector. (2019). Determinants of dividend payout ratio: a case of Polish banking sector. Zeszyty Programu Top 15, 11. (Original work published 2/2021AD)

MLA style

Ivanova, Anastasiia. “Determinants Of Dividend Payout Ratio: A Case Of Polish Banking Sector”. 2/2021AD. Zeszyty Programu Top 15, vol. 11, 2019.

Chicago style

Ivanova, Anastasiia. “Determinants Of Dividend Payout Ratio: A Case Of Polish Banking Sector”. Zeszyty Programu Top 15, Zeszyty Programu TOP 15, 11 (2019).

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[1] Afza, T. and Mirza, H. (2010). Ownership structure and cash Flows As Determinants of Corporate Dividend Policy in Pakistan. International Business Research. 210–221. https://doi.org/10.5539/ibr.v3n3p [Google Scholar]

[2] AI-Malkawi, H., Rafferty, M. and Pillai, R. (2010). Dividend Policy: A Review of Theories and Empirical Evidence. International Bulletin of Business Administration, 1451-243X, 171–200. [Google Scholar]

[3] Amidu, A. and Abor, J. (2006). Determinants of Dividend Payout Ratios in Ghana. The Journal of Risk Finance, 136–145. idend Policy in Pakistan. International Business Research. 210–221. https://doi.org/10.1108/15265940610648580. [Google Scholar]

[4] Badu, E. (2013). Determinants of Dividend Payout Policy of Listed Financial Institutions in Ghana. Research Journal of Finance and Accounting, 2222-2847, 185–191. [Google Scholar]

[5] Basel Committee on Banking Supervision (2010). Basel III: A global regulatory framework for more resilient banks and banking system. Geneva: Bank for International Settlements Communications. [Google Scholar]

[6] Black, F. and Scholes, M. (1974). The effects of dividend yield and dividend policy on common stock prices and returns. Journal of Financial Economics, 1–22. https://doi.org/10.1016/0304-405X(74)90006-3. [Google Scholar]

[7] Cichy, J. (2017). Sytuacja finansowa polskiego sektora bankowego w warunkach wzrostu obciążeń finansowych i ich wpływ na ratingi banków. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Katowicach, 7–18. [Google Scholar]

[8] Fitri, R., Hosen, M. and Muhari S. (2016). Analysis of Factors that Impact Dividend Payout Ratio on Listed Companies at Jakarta Islamic Index. International Journal of Academic Research in Accounting, Finance and Management Sciences, 87–97. https://doi.org/10.6007/IJARAFMS/v6-i2/2074. [Google Scholar]

[9] Franklin, J. and Muthusamy, K. (2010). Leverage, Growth and Profitability as Determinants of Dividend Payout Ratio-Evidence from Indian Paper Industry. Asian Journal of Business Management Studies, 26–30. [Google Scholar]

[10] Imran, K. (2011). Determinants of Dividend Payout Policy: A Case of Pakistan Engineering Sector. The Romanian Economic Journal, 14(41), 47–60. [Google Scholar]

[11] Kaźmierska-Jóźwiak, B. (2014). Determinants of Dividend Policy: Evidence from Polish Listed Companies. Procedia Economics and Finance, 473–477. [Google Scholar]

[12] King'wara, R. (2015). Determinants of Dividend Payout Ratios in Kenya. Research Journal of Finance and Accounting, 48–52. [Google Scholar]

[13] Maladjian, C. and Khoury, R. (2014). Determinants of the Dividend Policy: An Empirical Study on the Lebanese Listed Banks. International Journal of Economics and Finance, https://doi.org/10.5539/ijef.v6n4p240, 240–256. [Google Scholar]

[14] Malik, F., Gul, S., Khan, M., Rehman, S. and Madina, K. (2013). Factors Influencing Corporate Dividend Payout Decisions of Financial and Non-Financial Firms. Research Journal of Finance and Accounting, 35–46. [Google Scholar]

[15] Marfo-Yiadom, E. and Agyei, S. (2011). Determinants of Dividend Policy of Banks in Ghana. International Research Journal of Finance and Economics, 91–108. [Google Scholar]

[16] Mehta, A. (2012). An Empirical Analysis of Determinants of Dividend Policy – Evidence from the UAE Companies. Global Review of Accounting and Finance, 18–31. [Google Scholar]

[17] Murtaza, M., Iqbal, M., Ullah, Z., Rasheed, H., and Basit, A. (2018). An Analytical Review of Dividend Policy Theories. Journal of Advanced Research in Business and Management Studies, 62–76. [Google Scholar]

[18] National Bank of Poland (2020). Innovations in the commercial bank sector in Poland. Research Report 2019. [Google Scholar]

[19] Nuhu, E. (2014). Revisiting the Determinants of Dividend Payout Ratios in Ghana. International Journal of Business and Social Science, 5(8), 230–238. [Google Scholar]

[20] Petit, R. (1972). Dividend announcements, security performance, and capital market efficiency. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1972.tb03018.x, 993–1107. [Google Scholar]

[21] Priya, P. and Mohanasundari, M. (2016). Dividend Policy and Its Impact on Firm Value: A Review of Theories and Empirical Evidence. Journal of Management Sciences and Technology, 59–69. [Google Scholar]

[22] Rafique, M. (2012). Factors Affecting Dividend Payout: Evidence From Listed Non-Financial Firms of Karachi Stock Exchange. Business Management Dynamics, 76–92. [Google Scholar]

[23] Tanushev, C. (2016). Theoretical Models of Dividend Policy. Journal Economic Alternative, 299–331 [Google Scholar]

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