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VOL. 10, ISSUE 6 (2024)
Impact of financial determinants on dividend payout of commercial banks in Nepal
Authors
Sushmita Gaire
Abstract
This study investigates the impact of
financial determinants on the dividend payout of commercial banks in Nepal. A
sample of 10 banks was selected from the 19 listed on the Nepal Stock Exchange
(NEPSE), using convenience sampling. The analysis spans a 10-year period from
fiscal year 2070/71 to 2079/80, with a total of 100 observations. Data were analyzed
using SPSS 20 software. The
findings show a weak and statistically insignificant relationship between net
profit, bank size, and cash flow with the dividend payout ratio. However, a
significant positive correlation was found between the dividend payout ratio
and the market-to-book value ratio, suggesting that banks with higher market
value relative to their book value tend to distribute higher dividends.
Additionally, a negative correlation with the slack ratio indicates that banks
with more slack resources typically pay fewer dividends. The regression model
was statistically significant, with net profit and market-to-book value ratio
being the key significant predictors of the dividend payout ratio. This study
offers valuable insights into the financial factors influencing dividend payout
of commercial banks in Nepal.
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Pages:73-80
How to cite this article:
Sushmita Gaire "Impact of financial determinants on dividend payout of commercial banks in Nepal". International Journal of Commerce and Management Research, Vol 10, Issue 6, 2024, Pages 73-80
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