Dividend policy decision has a great influence on financial structure, flows of funds and corpora... more Dividend policy decision has a great influence on financial structure, flows of funds and corporate liquidity. However it's yet unresolved puzzle. This paper is an effort to reveal the insight dynamics that determine dividend payout with reference to Ethiopian insurance companies on basis of data covers eight years (2007-2014) period. In light of prior literature, key explanatory variables were identified to disclose their relationship and influence on dividend payout. These variables are profitability, liquidity, leverage, firm's size, growth opportunity, lagged dividend payout ratio and business risk. The assumptions needed to be fulfilled for OLS were tested; the residual was found homoscedastic, free of multicollinearity, free of autocorrelation and normally distributed. Result using random effect panel least square regression exhibited that profitability, liquidity, growth opportunity and lagged dividend payout ratio has a significant relationship with dividend payout r...
Dividend policy decision has a great influence on financial structure, flows of funds and corpora... more Dividend policy decision has a great influence on financial structure, flows of funds and corporate liquidity. However it's yet unresolved puzzle. This paper is an effort to reveal the insight dynamics that determine dividend payout with reference to Ethiopian insurance companies on basis of data covers eight years (2007-2014) period. In light of prior literature, key explanatory variables were identified to disclose their relationship and influence on dividend payout. These variables are profitability, liquidity, leverage, firm's size, growth opportunity, lagged dividend payout ratio and business risk. The assumptions needed to be fulfilled for OLS were tested; the residual was found homoscedastic, free of multicollinearity, free of autocorrelation and normally distributed. Result using random effect panel least square regression exhibited that profitability, liquidity, growth opportunity and lagged dividend payout ratio has a significant relationship with dividend payout r...
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Papers by Henok Tefera