The Effect of Dividend Policy on Determining the Working Capital Requirement
Journal Title: IOSR Journal of Economics and Finance (IOSR-JEF) - Year 2018, Vol 9, Issue 3
Abstract
The effect of dividend policy on value of the firm is the most debated issue in the field of finance because the dividend decision is correlated with investment decision and financing decision of a listed firm. The most important factor that is considered in working capital financing decision is the dividend policy of a firm because working capital requirement can be financed by the retained earnings. A large number of literatures that support and do not support this wisdom have been found. So, the current study has been undertaken aiming at evaluating the effect of dividend policy on working capital requirement of listed Pharmaceutical companies. The study has covered secondary data and analyzed the data by employing descriptive statistics, correlation and multiple regression models. Different tests of hypotheses are employed to test the coefficient, constant and fitness of the model. The study has found that there is positive effect of dividend policy on the determination of working capital requirements of a firm.
Authors and Affiliations
Farhana Nasrin, Md. Abdullah Al Hasan
Keywords
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- DOI 10.9790/5933-0903020812.
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