Testing Partial Adjustment Dividend Behavioral Models in Emerging Markets: Evidence from Pre- and Post-Market Reforms in Bangladesh

Global Journal of Business Research, Vol. 3, No. 1, pp. 1-14, 2009

14 Pages Posted: 27 Feb 2010

See all articles by Sabur Mollah

Sabur Mollah

Sheffield University Management School, University of Sheffield; Swansea Management School, Swansea University; Hull University Business School; Hull University Business School

Date Written: 2009

Abstract

A number of studies examine dividend policy and security price behavior in emerging markets but none on the stock market of Bangladesh. Partial adjustments are made to dividend behavior models that are then tested on the Dhaka Stock Exchange using data over the period of 1988-2003 in order to identify the dividend policy and security price behavior of the emerging Stock Market of Bangladesh. The empirical results suggest that dividend decisions are primarily governed by current profitability and lagged dividends. The empirical results identified cash flow as the better measure of the company’s ability to pay dividends.

JEL Classification: G35

Suggested Citation

Mollah, Sabur, Testing Partial Adjustment Dividend Behavioral Models in Emerging Markets: Evidence from Pre- and Post-Market Reforms in Bangladesh (2009). Global Journal of Business Research, Vol. 3, No. 1, pp. 1-14, 2009. Available at SSRN: https://ssrn.com/abstract=1555146

Sabur Mollah (Contact Author)

Sheffield University Management School, University of Sheffield ( email )

Conduit Road
Sheffield, Sheffield S10 1FL
United Kingdom

Swansea Management School, Swansea University ( email )

Singleton Park
Swansea, Wales SA2 8PP
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Great Britain HU6 7RX
United Kingdom

Hull University Business School ( email )

Cottingham Road
Hull, Hull HU6 7RX
United Kingdom

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