Determinants of Dividend Payout Policy of listed Financial Institutions in Ghana

Abstract

This paper seeks to examine the determinants of dividends payout policy of listed financial institution in Ghana using fixed and random effects. Panel data covering 2005-2009 from the selected company were used for the study. The results shows statistically significant and positive relationship between Age and liquidity but saw statistically insignificant relationship between profitability, collateral and dividend payment. Therefore, the major determinants of dividend policy of financial institutions in Ghana are age of the firm, collateral and liquidity.

Key words:  Dividends policy, Financial Institutions, Profitability, Leverage