FACTORS AFFECTING CORPORATE DIVIDEND PAYOUT: A CASE OF COMMERCIAL BANKS WITH FOREIGN INVESTMENT OPERATING IN NEPAL

Abstract

The objective of research is to know the ratio of profitability, financial leverage, growth, liquidity and Dividend payout measuring variable. To examine the relationship between dividend payout and its determinants to the independent variable of the sample commercial Banks. To analyze the impact of with profitability, Financial Leverage, price earnings Ratio and liquidity to the dividend payout of sample commercial banks. The research is done by using descriptive and explanatory research design. Out of 20 commercial banks heaving foreign direct investment 3 bank are select randomly and all the data are secondary collected from annual report of the bank, Nepal stock exchange website and Merolagani website. Financial and statistical instrument are used for the analysis such are different ratio, descriptive statistic, correlation and multiple regression analysis are done for find out the objectives of the research. For data presentation and analysis is don using MS EXCEL and SPSS 23 version. It is found that the dividend payout ratio which is calculated by dividing the dividend per share by earning per share is highest dividend payout ratio in Nabil bank and lowest dividend payout is Himalayan bank limited. The price earnings ratio is the growth of the organization is the highest in EBL bank and lowest in Nabil bank limited. The liquidity measuring ratio called current assets to current liabilities and liquidity ratio in Himalayan bank and lowest ratio in NABIL bank limited. The Everest bank limited the profitability, financial leverage and Growth is positive relationship with Dividend payout and which is not significant. The relationship between the Dividend payout and liquidity is negative relationship and which is not significant. The NABIL bank limited relationship between the profitability, financial leverage to the dividend payout is negative relationship and which is not significant. The impact of Growth to the dividend payout ratio is positive and which is not significant in EBL. The impact of profitability, financial leverage and liquidity to the dividend payout ratio is negative and which is not significant in NABIL. The impact of Growth to the dividend payout ratio is positive and which is not significant In NABIL. The impact of profitability, financial leverage and liquidity to the dividend payout ratio is positive and which is significant in HBL. The impact of Growth to the dividend payout ratio is negative and which is significant in HBL. Key Words: Profitability, financial leverage, Growth, Liquidity and Dividend payout