Zeszyty Programu TOP 15

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

Ivanova, Anastasiia

Akademia Leona Koźmińskiego

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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.

Metadata

Journal Zeszyty Programu TOP 15 
Volume 11 
Issue date 2/2021 
Type Article 
Language en