DETERMINANTS OF CORPORATE DIVIDEND PAYMENT IN NEPALESE INSURANCE COMPANIES A

Abstract

The main purpose of the study is to examine the determinants of dividend payment in Nepalese insurance companies for ten year periods (2013/14-2022/23). Multiple regression analysis, correlation, and descriptive statistics were employed in this investigation. This study reveals that insurance companies have high dividend distributed to the shareholders during the study period indicate that earning of insurance companies has been received by the ordinary shareholders. The correlation study reveals that, while gross premium has an insignificant negative link with dividend payment, return on assets, leverage ratio, and inflation rate have strong positive relationships with insurance businesses in Nepal. Furthermore, there is a strong positive correlation between liquidity and Nepali insurance firms' dividend payments. The results of the multiple regression analysis show that the sample insurance businesses in Nepal’s dividend payout are significantly positively impacted by both the inflation rate and return on assets. Leverage and liquidity, however, have a negligible beneficial impact on dividend payments. Furthermore, the dividend payout is somewhat negatively impacted by gross premium. Because they had such a large influence, the study came to the conclusion that the inflation rate and return on assets were the main drivers of the insurance firms' dividend payments in Nepal.