Determinants of Dividend Payout Policy: Evidence from a Philippine Context

Abstract

Using data of Philippine-listed firms from 2014 to 2018, this study tests how determinants of dividend payout policy affect cash dividend payout’s likelihood and magnitude. It shows liquidity, firm size, and insider ownership, measured as an insider as the largest shareholder, having a significant positive effect on dividend payout likelihood. Dividend payout magnitude is positively affected by profitability and leverage, and negatively affected by insider ownership. Liquidity, leverage, and insider ownership have contradictory results for both likelihood and/or magnitude of dividend payout, and may require further studies using either more appropriate measures and/or methodologies.