Do Emerging Market Firms Follow Different Dividend Policies? Empirical Investigation on the Pre and Post Reform Dividend Policy and Behaviour of Dhaka Stock Exchange Listed Firms
Studies in Economics and Finance, Vol. 28(2), pp. 118-135.
25 Pages Posted: 31 Aug 2009 Last revised: 14 Jun 2014
Date Written: August 26, 2009
This study investigates the behaviour of pay-out policy of Dhaka Stock Exchange (DSE) listed firms preceding and following financial crisis to see whether dividend policy appears as significant measure to protect the general shareholders’ interest after the crisis in 1998. OLS models are tested on DSE data preceding (1988-1997) and following financial crisis (1999-2003), on which no other study has been conducted yet. The empirical results fail to trace noticeable improvements in pay-out policy after the market crisis and dividend policy does not appear as a significant measure to protect the shareholders’ interest in the emerging market of Bangladesh.
Keywords: Pay-out Policy, Emerging Markets
JEL Classification: G12, G14, G35
Suggested Citation: Suggested Citation