Determinants of Dividend Policy: A Case Study on the Listed Commercial Banks in Bangladesh

Abstract

The paper presents an extensive investigation into the determinants that are used in the identification of dividend policy in enlisted commercial banks. These banks are collected from the list of the Dhaka Stock Exchange. Through comprehensive analysis utilizing a large dataset and advanced econometric techniques, this paper explores different corners of the issue. The multifaceted factors have been identified here that influence dividend decisions in the banking sector in our country. The findings reveal the substantial impact of various variables. Some of them are profitability, firm size, leverage, growth opportunities, stock market performance, dividend policy, etc. The results of the paper offer valuable insights. It dived into the intricate dynamics of dividend decision-making by shedding light on the specific drivers of dividend payouts in the enlisted commercial banks. The research will assist the informing investors, managers, and policymakers in their decision-making processes. The implications of the study extend beyond enlisted commercial banks, serving as a valuable resource for the broader financial industry in Bangladesh.