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The Relationship between the Dividend Payout Ratio and Value of the Firm Listed in the Egyptian Securities Exchange

المصدر: المجلة العربية للنشر العلمي
الناشر: مركز البحث وتطوير الموارد البشرية - رماح
المؤلف الرئيسي: Ameen, Ahmed Mohamed (Author)
مؤلفين آخرين: Martin, Sirucek (Advisor)
المجلد/العدد: ع50
محكمة: نعم
الدولة: الأردن
التاريخ الميلادي: 2022
الشهر: كانون الأول
الصفحات: 14 - 63
ISSN: 2663-5798
رقم MD: 1436439
نوع المحتوى: بحوث ومقالات
اللغة: الإنجليزية
قواعد المعلومات: EduSearch, HumanIndex
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المستخلص: Decision making about dividend payout is one of the most important decision that companies encounter with. Dividend payout ratio is dependent on lots of elements such as investing opportunities, profitability, income tax, laws obligation and liquidity. The objective of the study was to determine the relationship between dividend payout ratio and the value of the firm for companies listed at the Egyptian Stock Exchange. The study period was a six-year period i.e., 2014-2019.This study involved the use of a descriptive research design. Using a sample of 129 listed firms which were randomly selected the study employed secondary data. This study found that there was a significant relationship between dividend payout ratio and the value of the firm for companies listed at the Egyptian security market. Additionally, the findings revealed a positive relationship between dividend payout ratio and the stock trend in the Egyptian security market. In particular, change in dividend (i.e., dividend payout ratio policy) was a result of changes in Beta and standard deviation, as exploratory variables of stock trend, across the firms appearing in the 17 sectors as listed in the Egyptian Stock Exchange. The study recommends that since dividend policy has an effect on the value of the firms quoted at Egyptian Security Market, companies should pay dividends to maintain a high firm value.

ISSN: 2663-5798