Dividend Behaviour of Quoted Companies of the Douala Stock Exchange Market, Cameroon
DOI:
https://doi.org/10.14738/abr.86.8301Keywords:
Dividend Behaviour; Dividend Payout; Quoted Companies; Dividend Policy; Market Capitalization; Economic Development; capital flight.Abstract
For over sixty years now, finance researchers have concentrated on conducting studies on dividend behaviour as well as its determinants in different countries in the world.Some have exploited the effects of dividend payout on the performance of quoted companies with particular interest on current and previous levels of dividends as it is also the case with the level of profits, most of which give divergent conclusions. It is based on the above that this study was designed to examine the determinants of dividend behaviour ofquoted companies in the Douala Stock Exchange market using the Generalized Method of Moments (GMM) regressiontechniques based on secondary quarterly data from the Douala Stock ExchangeReports. The findings reveals thatearnings per share, the previous level of dividend and capital structure determine the current dividend behaviour in the Douala stock exchange market.While the previous level of dividend serves as a central bench mark when deciding on the dividend policy, increases in earnings per share and/or decrease in debt to equity ratio have potentials of significantly increasing dividend per share. Based on this finding, it is strongly recommended that policy measure by the government or corporate management aimed at providing and controlling a consistent pattern of dividend payment should take the previous level of dividends into consideration and should also pay special attention to earnings per share and capital structure of the listed companies.Therefore the capital structure which must be tilted towards indigenous equity should be put in place to avoid excessive capital flight.
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Roji, G. (2009). Dividend Behaviour in India afetr Share Split. Indian Journal of Economics and Business .
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Samih, A. A. (2012). Determinants of Cyclical Aggregate Dividend Behaviour. Review of Economics and Finance .
Servas, H., & Tufano, P. (2006). The Theory and Practice of Corporate Dividend and Share Repurchase Policy. Deutsch Bank Working Paper .
Shaif, J., & Waliullah. (2012). Evolving Corporate Governance and the Dividend Behaviour regime in Japan. Centre For Financial and Management Studies .
Wambe, T. M., & Tsapi, V. (2013). Determinants of Dividend Distribution in Cameroonian Companies. African Journal of Business Management Vol. 7(7) , 579-590.
Zaman, S. (2013). Determinants of Dividend Policy of A Private Commercial Bank in Bangladesh: Which is the Strongest, Profitability, Growth or Size. Asian Business Research Conference; Working Paper .
Zenner, M. (2018). Dividends: The 2011 Guide to Dividend Policy Trends and Best Practices. J.P Morgan .
Al-Haddad, W., Saleh, A.-Z., Shukairu, M., & Mahmood, N. (2011). The Effects of Dividend Policy Stability on the Performance of the Banking Sector Listed on Amman Stock Exchange. International Journal of Humanities and Social Sciences. Vol.1 No.5 .
Al-Najjar, B., & Belghitar, Y. (2012). The Information Content of Cashflow in the Context of Dividend Smoothing. Economic Issues. Vol.17 Part2 .
Al-Yahyaee, K. H., Pham, T. M., & Walter, T. S. (2011). Dividend Smoothing When Firms Distribute Most of Their Earnings as Dividends. Applied Financial Economics .
Alzahrani, M., & Lasfer, M. (2008). The Impact of Taxation on Dividends: A Cross Sectional Analysis. Cass Business School Serminar Paper .
Azeem, M., & Muzammil, K. (2003). Dividend Paying Practices in the Northern Financial Sector of Pakistan: An Empirical Evidence from the Kerachi Stock Exchange. Journal of Poverty, Investment and Development: An Open Access International Journal. Vol. 1 .
Bahng, J. S., Lee, H., & Jeong, H. C. (2011). Adjustment Behaviour of Dividend Payout in G7 countries: A Different Look. Australian Journal of Business and Management Research. Vol.1 No.9 .
Baker, H. K., & Powell, E. G. (2002). Revisiting Managerial Perspectives on Dividend Policy. Journal of Economics and Finance. Vol.26 No.3 .
Banerjee, S., Vladimir, G., & Spindt, P. (2005). Stock Market Liquidity and Firm Dividend Policy. Jel Classification .
Bauer, L., Beveridge, S., & Ranjini, T. (2008). The Dividend Puzzle: The Influence of Taxes, Tick Soze and Short Term Trading on Ex-Dividend Day Prices in Canada. Great Lake Herald. Vol.2 No.2 .
Bawa, S. K., & Prabhjot, K. (2012). EXCEL Empirical Validity of Dividend Policy Models in the Indian Manufacturing MSMEs. International Journal of multidisciplinary Management Studies. Vol.2 Issue 1 .
Black, F. (1976). The Dividend Puzzle. The Journal of Portfolio Management .
Boubakari, A., & Ognaligui, R. W. (2010). Financial Stock Market and Economic Growth in Developing Countries: The Case of The Douala Stock Exchange Market in Cameroon. International Journal of Business Studies. Vol. 5 No. 5 .
Chenwi, E. (2012). Doing Business in Cameroon. Chenwi Chartered Accountants .
Effiong, J. E. (2004). Dividend Behaviour of Quoted Companies in Nigeria: An Empirical Analysis. M.Sc Thesis, University of Calabar - Nigeria .
Eng, S., Yahya, M., & Hadi, A. (2013). Dividend Payout Policy: A Comparison on Malaysian Islamic and Conventional Financial Institutions. Journal of WEI Business and Economics. Vol.2 No.2 .
Eriotis, N. (2005). The Effects of Distributing Earnings and Size of the indian Firm to its Dividend Policy: Some Greek Data. International Business and Economics Journal. Vol.4 No.1 .
Foroghi, D., Farzad, K., & Zahra, M. (2011). The Investigation Relationship of Dividend Behaviour and Likelihood of Paying Dividends with Financial Variables in Tehran Stock Exchange. Interdisciplinary Journal of Contemporary Research in Business. Vol.3 No.8 .
Garett, I., & Priestley, R. (2000). Dividend Behaviour and Dividend Signaling. The Journal of Financial and Quantitative Analysis. Vol.35 No.2 , 173-189.
IFC. (2014). Doing Business in Cameroon, 11th Edition. World Bank Group .
Ilaboya, O. J., & Aggreth, M. (2013). Dividend Policy and Share Price Volatility. Journal of Asian Development Studies. Vol. 2 Issue 2 .
Imran, H., Shahzad, M., Irfan, C. M., Hassan, S., & Mustafa, U. (2014). Imoact of Dividend Policy, Earnings Per Share, Return on Equity, Profit After Tax on Stock Prices. International Journal of Economics and Empirical Research .
Imran, K. (2011). Determinants of Dividend Payout Policy: A Case of Pakistan Engineering Sector. The Romanian Economic Journal .
Jablonski, B. (2012). The Influence of Dividend Policy On The Efficiency of Investments On The Polish Capital Market. IFZ Working Paper No.0019/2012 .
Juma'h, A. H., & Pacheco, C. J. (2008). The Financial Factors Influencing Cash Dividend Policy: A Sample of U.S Manufacturing Companies. Inter Metro Business Journal. Vol.4 No.2 .
Kapoor, S. (2019). Impact of Dividend Policy on Shareholders Value: A Stucy of Indian Firms. Jaypee Institute of Information Technology .
Karikallio, H. (2010). Dynamic Dividend Policy Behaviour of Finnish Firms and Dividend Decision Under Dual Income Taxation. PTT Publications 22 .
Khoramin, M., Taleb Nia, G., & Hamidreza, V. (2013). The Relationship between Profitability and Financial Flexibility, and Investment Opportunities and Dividend Policy in Companies listed in Tehran Stock Exchange. Journal of Life Science and Biomedicine , 344 - 351.
Khorsandi, F., Shahrestani, Hoshang, M., Ephrain, M., & Hessam, B. M. (2013). Review of The Role of Dividend Policy in Determining Stock Market Value. Interdisciplinary Journal of Contemporary Research in Africa. Vol.5 No.1 .
Kinkki, S. (2001). Dividend Puzzle: A Review of Dividend Theories. LTA 1/01 , 58 - 97.
Litner. (1956). Distribution of Incomes of Corporations Among Dividends, Retained Earnings and Taxes. The American Economic Review Vol. 46 No. 2 .
Liu, S., & Hu, Y. (2005). Empirical Analysis of Cash Dividend Payment in Chinese Listed Companies. Nature and Science. Vol.3 No.1 .
Manoj, K. S. (2009). The Ownership and Industry Effects of Corporate Dividend policy in India. MPRA Paper No.12545 .
Manos, R. (2001). Capital Structure and Dividend Policy: Evidence from Emerging Markets. University of Birmingham Research Archives .
Michaely, R., & Michael, R. (2006). The Dividend Policies of Private Firms: Insights into Smoothing, Agency Costs and Information Asymmetry. The Wharton School, University of Pensylvannia .
Murekefu, T. M., & Ochuodho, P. O. (2012). The Relationship Between Dividend Payout and Firm Performance: A Study of Listed Companies in Kenya. European Scientistic Journal Vol. 8 No. 9 .
Njimanted, G. F. (2012). An Investigation into the Volatility and Stock Returns Efficiency in African Stock Exchange Markets. International Review of Business Research Papers. Vol. 8, No. 5 , 176 - 190.
Omet, G. (2019). Dividend Policy Behaviour in the Jordanian Capital Market. International Journal of Business .
Ovat, O. O. (2011). Stock Market Development and Economic Growth in Nigeria: Market Size Versus Liquidity. Department of Economics, University of Calabar - Nigeria .
Pandey, I. M. (2015). Corporate Dividend Policy and Behaviour: The Malaysian Evidence. Asian Academic of Management Vol. 8 No. 1 .
Pandey, I. M., & Ramesh, B. (2004). Dividend Behaviour of Indian Companies after Monetary Policy Restrictions. Indian Institute of Management .
Ramachandran, A., & Veeramuthu, P. (2010). The Impact of Firm Size on Dividend Behaviour: A Study with Reference to Corporate Firms Across Industries in India. Managing Global Transitions. Vol.8 No.1 .
Roji, G. (2009). Dividend Behaviour in India afetr Share Split. Indian Journal of Economics and Business .
Roji, G. (2009). Dividend Behaviour of Indian Firms after Share Split. Indian Journal of Economics and Business .
Ross, S. A., Randolph, W. W., & Jeffrey, J. (2008). Corporate Finance Eight Edition. New York: McGraw Hill Irwin.
Samih, A. A. (2012). Determinants of Cyclical Aggregate Dividend Behaviour. Review of Economics and Finance .
Servas, H., & Tufano, P. (2006). The Theory and Practice of Corporate Dividend and Share Repurchase Policy. Deutsch Bank Working Paper .
Shaif, J., & Waliullah. (2012). Evolving Corporate Governance and the Dividend Behaviour regime in Japan. Centre For Financial and Management Studies .
Wambe, T. M., & Tsapi, V. (2013). Determinants of Dividend Distribution in Cameroonian Companies. African Journal of Business Management Vol. 7(7) , 579-590.
Zaman, S. (2013). Determinants of Dividend Policy of A Private Commercial Bank in Bangladesh: Which is the Strongest, Profitability, Growth or Size. Asian Business Research Conference; Working Paper .
Zenner, M. (2018). Dividends: The 2011 Guide to Dividend Policy Trends and Best Practices. J.P Morgan .
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Published
2020-06-29
How to Cite
Akume, D. A., Njimanted, G., & Yakum, I. (2020). Dividend Behaviour of Quoted Companies of the Douala Stock Exchange Market, Cameroon. Archives of Business Research, 8(6), 133–155. https://doi.org/10.14738/abr.86.8301
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