Sabur Mollah, Associate Professor at the School of Business has recently published a new book with the title: "Dividend Policy and Behavior in an Emerging Market: Evidence from Dhaka Stock Exchange". The book addresses two questions: first, Why do corporations pay dividends?, and second, Why do investors pay attention to dividend? Particularly the book focuses on the behavioral aspect of pay-out policy in an emerging market.
Summary of the book:
'The harder we look at the dividend picture, the more it seems like a puzzle, with pieces that just don't fit together' (Black 1976, p. 5). A number of researchers provide insights, theoretical as well as empirical, into the dividend policy puzzle. The issue as to why firms pay dividends is as yet unresolved. There is no unanimity among researchers but everyone agrees that the issue is important, as dividend payment is one of the most commonly observed phenomenon in corporations world-wide. The empirical results identify leverage, size, insider ownership, and collateralizable assets as the major determinants of dividend policy. The empirical results document that dividend decision is primarily governed by cash flow for measuring the capacity of the companies to pay dividends and dividends paid in the previous years. The empirical results also identify Brittain's (1966) partial adjusted model as the best-fit dividend behavioural model. As insiders trade in the market, information used to be adjusted with the share prices before announcement, therefore, dividend announcement does not convey any new information to the emerging market.
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For more information, please contact Sabur Mollah: email@example.com