The policy of dividend variability of companies listed on the West African regional stock exchange: between predictability, retention and stability. (29th June 2022)

• Record Type: Journal Article
• Authors: Bama, Pourakin Djarius Dieudonné
• Is Part Of: Global business & economics review. Volume 27:Number 1(2022)
• Page Start: 72
• Page End: 95
• Publication Date: 2022-06-29
• Subjects: dividends -- predictability of dividends -- dividend retention -- dividend stability; Economics -- Periodicals; International economic relations -- Periodicals; 330.5
• Languages: English
• ISSNs: 1097-4954

Abstract

We will examine the dividend policy of companies listed on the West African regional stock exchange basing findings on a panel of 31 companies. Through a regression analysis, we find a mutual and significant influence of past dividends, prices, net earnings and returns on dividend variation. Furthermore, we show that dividend variation is stationary and predictable, as are the stock price, net income and stock return. This leads us to think that managers practise retention policy and dividend stability with an optimum distribution.