CONSISTENCY TEST OF DIVIDEND PAYOUT DETERMINANTS IN GHANA

Eliasu Nuhu - Faculty of Business Administration (Department of Finance), Islamic University College, Ghana

ABSTRACT

This study investigated the consistence of the determinants of dividend payout in Ghana. Secondary data collected for a 10 year period (i. e 2005-2014) which was divided into two periods of 2005-2009 and 2010-2014 for the purpose of ascertaining the consistent determinant(s) of dividend payout in Ghana were analyzed using the Ordinary Least Squares (OLS) panel regression technique. The findings revealed that, of all seven factors considered to have influence on dividend payout in previous studies in Ghana (i. e profitability, the square of profitability, board size, board independence, leverage, audit type, and taxes) only board size showed significant consistence across the two span period considered for the study. The outcome of this study was also consistent with the signaling theory, agency theory and the tax-effect hypothesis.

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