Review of Literature on Dividend Determinants in Banking Sector

Abstract

Dividend Payment Policy is considered as one of the significant areas of a company’s financial decision making in the era of post-liberalization. It is an instrument for companies to communicate their financial well-being and shareholder value to the investors, lenders and other stakeholders. The factors influencing the dividend payout ratio of the firms vary in different sectors under different circumstances. Extensive studies have been conducted on dividend determinants of companies belonging to different industries. Banking Industry is not an exception. Numerous studies have been done on dividend determinants of banking industry across the globe. The present study provides the theoretical empirical review of different dividend determinants with reference to banking industry. The study aims at creating a new model combining the major significant factors influencing the dividend decisions of the firms under different studies. The new model can be tested in the further studies on dividend determinants with reference to banking industry