Symposia & Conferences
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Item The Effect of Company Growth, Managerial Ownership, and Debt Policy on Dividend Policy: Evidence from Manufacturing Companies in Sri Lanka(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Madhubhashini, H. B. S.; Ranjani, R. P. C.Introduction: The study probes into the effect of company growth, managerial ownership, and the debt policy on dividend policy of listed manufacturing companies in Sri Lanka. Dividend policy is the most important component of corporate finance decisions in company's trade-off between shareholder returns and the growth and financial viability of the company. This research adopts a quantitative approach in analyzing datasets from the top10 capital goods manufacturing companies of the Colombo Stock Exchange from 2014-2023. Methodology: The study attempts to fill the existing in literature with regards to manufacturing in Sri Lanka by studying three important variables of dividend policy, growth of the company, ownership by management, and debt policy. For these variables, a conceptual framework was developed to show the impact of where dividend policy would be taken as the dependent variable. Secondary data like financial statements and annual reports would be analyzed using regression models and correlation techniques via STATA software. Findings: The research has produced a significant positive impact between growth in a company and dividend policy; thus, the higher the rate of company growth, the greater the number of dividends distributed. Although a positive impact exists between managerial ownership and dividend policy, that impact is found not to be significant. The study established a significant negative impact between the debt policy and dividend policy, meaning that higher debt levels restrict a company from paying dividends. Conclusion: The findings underscore the importance of company growth as a key driver of dividend policy in Sri Lankan manufacturing firms. Managerial ownership demonstrates a positive impact however, the absence of statistical significance indicates the role of more critical factors. The negative effect of debt policy on dividends emphasizes the careful management of levels of debt by companies to sustain returns to shareholders. This study, thus, provides critical insights for investors and policymakers in the understanding of dividend policies in manufacturing.Item Identifying the Relationship Between Dividend Policy and Stock Prices in the Banking Sector: Evidence from Colombo Stock Exchange(Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka., 2025) Hewawitharana, B. D.; Samarawickrama, A. J. P.Introduction: The banking industry supports investment activity, minimizes credit availability, and facilitates the flow of funds, making it the foundation of economic growth. This study aims to empirically test to identifying the relationship between dividend policy and stock prices in the banking sector. Methodology: The study adopts a quantitative approach using a panel dataset spanning 2011–2023 from seven banking companies on the CSE. Secondary data was obtained from the published annual reports. These firms were selected for their consistent dividend declarations over 13 years. Panel data regression models have been utilized to analyze the data as the Hausman test suggest the fixed effect model is the most appropriate for describing the relationship among the variables. EViews 12 analytical software has been used to analyze the data. Findings: The analysis revealed significant relationships between dividend policy and stock prices. Dividend payout ratios exhibited the most pronounced influence on stock prices, while dividend yields showed mixed results. Conclusion: Dividend policy serves as a critical determinant of stock price behavior in the banking sector, highlighting its importance as a strategic tool for both investors and corporate decision-makers. The findings emphasize the need for well-formulated dividend policies to enhance shareholder value, improve market perceptions, and provide guidance in volatile market conditions.Item The Impact of Dividend Policy on Stock Price: An Empirical Evidence from Hotels and Travels Companies Listed in Colombo Stock Exchange(Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, 2016) Hettiarachchi, U.S.J.; Rajeshwaran, N.Dividend Policy is one of the important factors that affect the stock price. Dividend policy is measured by dividend per share, dividend yield and dividend payout ratio. The purpose of this paper is to identify the impact of dividend policy on stock price in the hotels and travels sector companies listed in the Colombo Stock Exchange. Thirty-four companies listed in the hotels and travels sector were analyzed for a period of five years from the year 2012 to 2016. Data were collected from the annual reports of the companies. Statistical Package (SPSS 19.0) was applied to analyze and evaluate the collected data. Correlation analyses and multiple regression are used to explore the association between study variables. A positive impact is found between dividend per share, dividend presence in a firm with stock price changes, while a negative impact between dividend yield and stock price changes is also identified. The impact of dividend pay-out ratio deemed to be insignificant. In addition, it is shown that assets growth rate and firm size explain stock price changes. The study supports the fact that dividend policy is relevant in determining the stock price for the hotels and travels sector companies listed in the Colombo Stock Exchange.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.