Dynamics Of Factors Influencing Dividend Policies Of Quoted Firms In Ghana

Abstract

This study was conducted to determine the impact of profitability, investment, liquidity, inflation, and government effectiveness on firms’ dividend policy in Ghana. The study comprises 22 non-financial firms listed on the GSE from to 2011-2020 over 10 years.  Regression analysis was performed on Stata 13 by using the longitudinal Bundell estimation method. The results reveal a positive, significant, and robust relationship between profitability and dividend policy, while liquidity and investment have a positive but insignificant relationship with dividend policy. The other variables that influence dividend policies are inflation and government effectiveness. Our results are supported by the available literature, and further studies need to be conducted by including financial institutions in the data.