Journal of Finance and Accounting

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Determinants of Dividend Policy for Companies Listed at Dar Es Salaam Security Exchange (DSE), a Case of Selected Listed Companies

Received: 10 May 2016    Accepted: 23 June 2016    Published: 06 July 2016
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Abstract

The main objective of the study was to establish the determinants of dividend policies of companies listed at DSE. Specifically, the study aimed to identify factors that influence dividend policy among listed companies and explore the statistical relationship between determinants of dividend policy. Correlation and regression analysis were used to establish the relationship between the dependent and independent variables. The study concludes that the dividend policies of companies listed at the DSE is determined by the amount of profit after tax, liquidity and shareholders’ fund. Among these four determinants, Profitability is the most significant determinant of dividend policy. The study recommends that listed company should adopt dividend policy based on their current financial circumstances, especially, based on their current Profitability position. Also DSE should conduct frequent training to shareholders of various companies listed at DSE so as to help them make sound financial decisions with regard to which companies to buy shares from.

DOI 10.11648/j.jfa.20160404.16
Published in Journal of Finance and Accounting (Volume 4, Issue 4, July 2016)
Page(s) 202-211
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Dividend Policy, Listed Companies, Dares Salaam Stock Exchange, Tanzania

References
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Author Information
  • Accountancy Department, College of Business Education, Mwanza, Tanzania

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  • APA Style

    Magambo Evelyne F. (2016). Determinants of Dividend Policy for Companies Listed at Dar Es Salaam Security Exchange (DSE), a Case of Selected Listed Companies. Journal of Finance and Accounting, 4(4), 202-211. https://doi.org/10.11648/j.jfa.20160404.16

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    ACS Style

    Magambo Evelyne F. Determinants of Dividend Policy for Companies Listed at Dar Es Salaam Security Exchange (DSE), a Case of Selected Listed Companies. J. Finance Account. 2016, 4(4), 202-211. doi: 10.11648/j.jfa.20160404.16

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    AMA Style

    Magambo Evelyne F. Determinants of Dividend Policy for Companies Listed at Dar Es Salaam Security Exchange (DSE), a Case of Selected Listed Companies. J Finance Account. 2016;4(4):202-211. doi: 10.11648/j.jfa.20160404.16

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  • @article{10.11648/j.jfa.20160404.16,
      author = {Magambo Evelyne F.},
      title = {Determinants of Dividend Policy for Companies Listed at Dar Es Salaam Security Exchange (DSE), a Case of Selected Listed Companies},
      journal = {Journal of Finance and Accounting},
      volume = {4},
      number = {4},
      pages = {202-211},
      doi = {10.11648/j.jfa.20160404.16},
      url = {https://doi.org/10.11648/j.jfa.20160404.16},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jfa.20160404.16},
      abstract = {The main objective of the study was to establish the determinants of dividend policies of companies listed at DSE. Specifically, the study aimed to identify factors that influence dividend policy among listed companies and explore the statistical relationship between determinants of dividend policy. Correlation and regression analysis were used to establish the relationship between the dependent and independent variables. The study concludes that the dividend policies of companies listed at the DSE is determined by the amount of profit after tax, liquidity and shareholders’ fund. Among these four determinants, Profitability is the most significant determinant of dividend policy. The study recommends that listed company should adopt dividend policy based on their current financial circumstances, especially, based on their current Profitability position. Also DSE should conduct frequent training to shareholders of various companies listed at DSE so as to help them make sound financial decisions with regard to which companies to buy shares from.},
     year = {2016}
    }
    

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    AB  - The main objective of the study was to establish the determinants of dividend policies of companies listed at DSE. Specifically, the study aimed to identify factors that influence dividend policy among listed companies and explore the statistical relationship between determinants of dividend policy. Correlation and regression analysis were used to establish the relationship between the dependent and independent variables. The study concludes that the dividend policies of companies listed at the DSE is determined by the amount of profit after tax, liquidity and shareholders’ fund. Among these four determinants, Profitability is the most significant determinant of dividend policy. The study recommends that listed company should adopt dividend policy based on their current financial circumstances, especially, based on their current Profitability position. Also DSE should conduct frequent training to shareholders of various companies listed at DSE so as to help them make sound financial decisions with regard to which companies to buy shares from.
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