Dividend Policy Determinants of Companies Listed on the Egyptian Exchange in Terms of Firm Size and Industry Type | ||
| المجلة العلمية للإقتصاد و التجارة | ||
| Volume 54, Issue 4, December 2024, Pages 251-284 PDF (761.61 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/jsec.2024.395967 | ||
| Author | ||
| Asmaa Ahmed Abo Alkomsan | ||
| Faculty of Business Administration, Sadat Academy for Management Sciences, Cairo, Egypt | ||
| Abstract | ||
| This paper aims at investigating the factors affecting the dividend policy, with firm size and industry type as variables of companies listed on the Egyptian Exchange, as applied on a sample of 48 companies across five sectors, according to the nature of each of these sectors in terms of type of industry, as follows: food, beverages and tobacco sector, manufacturing sector, health care & pharmaceuticals sector, real estate sector, and services sector over the period of from 2019 to 2023 using panel regression models. The findings reveal that return on assets (RoA) has a weak positive correlation with dividend payouts, while return on equity (RoE) significantly negatively impacts dividends, indicating a preference for reinvestment. The debt-to-equity ratio (DER) also negatively affects dividends due to higher leverage, whereas the debt-to-assets ratio (DAR) positively influences payouts through effective debt management. Current and quick ratios showed no significant effects but were positively correlated. Firm activity is positively linked to higher dividends, and industry-type matters, with the healthcare sector providing the highest dividends, compared to the lower payouts in real estate. Firm size had no significant effect on dividends but correlated moderately with RoE and DER. These findings enhance the understanding of the relationships between firm-specific factors and dividend policies in a developing market context. | ||
| Keywords | ||
| dividend policy; profitability; liquidity; leverage; activity; firm size; industry type; current ratio; quick ratio | ||
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