Junior Research Symposia
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Item Impact of Dividend Policy on Financial Performance: With Special Reference to the Listed Hotels and Travelling Companies in Sri Lanka(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Padmashantha, K.G.D.; Karunarathne, W.V.A.D.The primary purpose of the study is to examine the impact of dividend policy on financial performance of companies in Sri Lanka. This study has selected twenty listed hotel and travelling companies in the Colombo Stock Exchange (CSE) to the sample from the listed hotel and travelling companies in the CSE on random basis. Secondary data were used to the study and the dividend and performance related data were gathered through annual reports of hotels and travel companies for the period of 2010 to 2015. Net Operating Cash Flow (NOCF), Book Value of Equity (BVE), Price Earnings Ratio (PER) and Dividend Payout Ratio (DPR) were selected as independent variables. Dependent variable of the study is Financial Performance, which measures by using Return on Assets (ROA). Descriptive statistics, Correlation analysis and Regression analysis were applied for analyzing data. The results reviewed that dividend payout is significantly correlate with the ROA. However, NOCF, BVOE and PER is correlated with ROA. The regression results show that all the independent variables have a significant impact on ROA. Study found that regular dividend policy and irregular dividend policy affect to the financial performance. Finally, the study represented, that dividend policy affects to the financial performance of hotel and travelling companies listed on CSE in Sri Lanka.Item Impact of dividend policy on financial performance of listed companies(Department of Accountancy, University of Kelaniya, 2015) Padmashantha, K.G.D.Dividends are payments made by a company to its shareholders from the profit made from operations. It represents the compensation for the shareholders delayed consumption. A firm’s dividend basically indicates the stability of the firm’s future cash flows. The dividend policy of a firm is determined by the firm’s financial leverage, the proportion of the total shares held by the insiders and the age of the firm (Nnadi, et al, 2011). Dividend decisions are important because they determine what funds flow to investors and what funds are retained by the firm for investment. The objective of this research is to assess whether there is an impact of dividend policy, to the financial performance. The sample of this research is the manufacturing firms in the Colombo Stock Exchange (CSE). For the research purpose the financial performance is measured based on Profit After Tax (PAT) and the dividend policy is measured by Dividend payout ratio, Return on Assets (RoA) Return on Equity (RoE). For the purpose of analysis of the sample secondary evidence is to be used which are obtained by the annual reports of past three consecutive years. These data is to be analyzed by using regression analysis. The expected conclusion of the research is that, the dividend policy and the financial performance has a positive relationship.