A proposed model for market risk-adjusted dividend policy: An application to non-financial firms in the Egyptian Stock Exchange

Abstract

Attention has been given in recent years to the components of dividend policy which are dividends payout ratio (DPR) and dividends per share (DPS). This thesis examines the impact of stock Price, Return on equity (ROE), Dividends Yield (DY), Firm size, Systematic Risk, Unsystematic Risk, Total Risk, industry, growth of systematic risk, growth of unsystematic risk and Firm growth on the components of dividends policy. The sample includes the non-financial firms in the EGX30 covering the period 2004-2018. The study utilizes panel data analysis for 22 non-financial firms listed on the Egyptian stock exchange EGX30. Using Panel data analysis, regression model using the Ordinary Least Squared (OLS), results showed that there is significant relationship between dividends yield and dividends payout ratio (DPR) associated with positive sign. On the other hand, size, dividends yield, and industry positive significant effect on dividends per share. While there is an insignificant Positive relationship between return on equity, price, systematic risk and unsystematic risk total risks on dividends per share.