Factors Influencing Dividend Policy in Bangladesh: Survey Evidence from Listed Manufacturing Companies in Dhaka Stock Exchange

  • Mohammad Shahidul Islam University of Fashion & Technology
  • ATM Adnan BGMEA University of Fashion and Technology (BUFT)


A firm considers various factors when approaching a dividend policy decision. To analyze the determinants of dividend policy in the context of Bangladesh, questionnaire survey has been done from financial decision makers of sample companies. The nonparametric test and factor analysis is used for interpreting results. The research finding exhibits that in the first stage, the economic related factor, legal constraint factor, capital market related factor, residual policy factor, capital source factor and clientele factors are considered in dividend decision making. Then in the second stage, the companies follow the preceding years’ pattern of dividend payment. In the next stage, dividend decision is made mainly on the level of earnings and liquidity.  The decision maker, investors and other stakeholders should follow these findings.

Author Biography

ATM Adnan, BGMEA University of Fashion and Technology (BUFT)

M.Sc. In Accounting and Finance,

Bangor University, Wales, United Kingdom.

Masters of Business Administration (MBA),

University of Dhaka, Dhaka, Bangladesh.

Bachelor of Business Administration (BBA),

American INternational University-Bangladesh (AIUB), Dhaka , Bangladesh.