International Journal of Scientific and Research Publications

IJSRP, Volume 7, Issue 8, August 2017 Edition [ISSN 2250-3153]


The Effect of Dividend Policy on Corporate Profitability: An Empirical Study on Beverage, Food and Tobacco Industry in Sri Lanka
      HirinduKawshala, KushaniPanditharathna
Abstract: The purpose of the study is to examine the relationship between dividend pay-out and corporate profitability. The study conducted as a panel sectional survey and exploited the sample frame of the Beverage, Food & Tobacco (BFT) industry in Sri Lanka. 10 companies were taken from the listed companies in Colombo Stock Exchange (CSE) under the Beverage, Food & Tobacco (BFT) industry in Sri Lanka. Secondary data for the period of 2012 to 2015 was used for this study based on financial statement. The objective of this study is to find out the impact of dividend payout on corporate profitability in Sri Lanka. The dividend policy measured using the dividend payout ratio, while return on equity (ROE) used as a measure of profitability. The study concluded that there is a positive significant relationship between dividend policy and the profitability in Beverage, Food & Tobacco (BFT) industry in Sri Lanka. The time horizon for this study is limited when compared with other studies.

Reference this Research Paper (copy & paste below code):

HirinduKawshala, KushaniPanditharathna (2017); The Effect of Dividend Policy on Corporate Profitability: An Empirical Study on Beverage, Food and Tobacco Industry in Sri Lanka; Int J Sci Res Publ 7(8) (ISSN: 2250-3153). http://www.ijsrp.org/research-paper-0817.php?rp=P686736
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