DETERMINANTS OF DIVIDEND PAYOUT DECISIONS OF COMMERCIAL BANKS IN NEPAL | Journal of Global ...

This study aims to identify the factors that influence commercial banks' dividend payout decisions in Nepal. The research is focused on secondary balance panel data from 12 commercial banks for the years 2013/14 to 2017/18, with 60 observations. Return on assets, bank size, market value per share, and inflation rate were used as dependent variables, while return on assets, bank size, market value per share, and inflation rate were used as independent variables. In this report, the results of the Pooled OLS model andthe Random Effects model for panel data analysis were estimated.The regression results of these models show that profitability, bank size, and inflation rate are all negatively linked to the decision to pay dividends by Nepalese commercial banks. It was discovered that the higher the profitability, the larger the bank, and the lower the inflation rate, the lower the dividend payout decisions. The findings, on the other hand, show that market value per share has a positive relationship with the decision to pay a dividend. This means that as the market value per share rises, the dividend payout decision rises as well. The study found that the market value per share is the most important factor in deciding whether or not to pay a dividend.

Please see the link - https://ikprress.org/index.php/JGEMBR/article/view/5715