Research Information System
Balkan 8. Uluslararası Sosyal Bilimler Kongresi, Podgorica, Montenegro, 2 - 06 July 2023, pp.13
Dividend policy is one of the most throughfully researched fields in corporate finance since the
pioneering study of Lintner(1956). However, it still remains as puzzle as why companies pay
dividend and why they pay it is still not known. No consensus has been reached in research
papers till today. As Black (1976) has mentioned: “The harder we look at the dividend picture
the more it seems like a puzzle, with pieces that just do not fit together”.Dividend decisions are
very important for companies in terms of their future, operational issues, cash flows &
budgetary reasons and stock prices. Also dividend payment decisions must be taken in
coherence with other investment and capital outsourcing decisions of the company.
In this research, it is planned to investigate the firm-specific determinants(such as profitability,
liquidity, company size etc) of dividend policy in a selected sub sector in a chosen emerging
market. Despite the wide range of empirical analysis, the determinants of dividend policy are
still not understood in details and these may change with the country or sector selected. Panel
data is planned to be utilised in the econometric analysis since it has some advantages such as
involving more information, minimising estimation bias, having more variability, considering
heterogenity etc. compared to time series or cross sectional data. The analysis results and
comments of the study are believed to be beneficial to shareholders, company managers and
creditors in their decisions in the selected emerging market.