The effects of firm specific variables on dividend decisions of Philippine listed firms from 2005 to 2007
Date of Publication
2007
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Management of Financial Institutions
Subject Categories
Finance and Financial Management
College
Ramon V. Del Rosario College of Business
Department/Unit
Financial Management
Thesis Adviser
Junette Perez
Defense Panel Chair
Edralin Lim
Defense Panel Member
Steven Lim
Ruben Carlo Asuncion
Abstract/Summary
The relevance of dividend policies has been subject to debate for many years with inconclusive results. Miller and Modigliani have hypothesized the irrelevance of dividend policies given a perfect capital market however, the existence of an imperfect capital market closer approximates reality. Likewise, the Philippines has an imperfect capital market. We recognize that dividend polices are not irrelevant given the existence of an imperfect capital market. As such, there is a greater need to determine which factors influence corporate dividend decisions. Implementing the general-to-specific approach or model selection, we use the random effects probit estimation method to see whether firm size, profitability, degree of financial leverage, firm growth and investment opportunities, and agency cost variables have significant effects on the probability of issuing dividends. Our results show that the agency cost variable proxied by insider ownership has a positive relationship with the probability of issuing dividends. Similarly, firm size and profitability are also positive determinants of dividend decisions, while, in contrast the firm financial leverage has a negative effect on the Philippine corporate dividend decision.
Abstract Format
html
Language
English
Format
Accession Number
TU21883
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
79, 8 leaves ; illustrations ; 28 cm.
Keywords
Corporations--Finance; Dividends--Philippines
Recommended Citation
Cheng, A., Cu, D., Ong, M., & Ong, R. (2007). The effects of firm specific variables on dividend decisions of Philippine listed firms from 2005 to 2007. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/6814