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The Effect of Retained Earnings on Dividend Policy from the Perspective of…
The Effect of Retained Earnings on Dividend Policy from the Perspective of Life Cycle
Literature review
H1: Retained earnings ratios significantly influence the
probability of paying dividends.
H2: Retained earnings ratio has significant effect to
company dividend payment rate.
H3: The influence of retained earnings ratio was greater towards the probability of established companies paying dividends compared to companies at the growing stage
H4: The influence of retained earnings ratio was greater towards the level of dividend payout at established companies compared to companies at the growing stage
Introduction
The issue of dividend policy has not been resolved yet
Methodology
Probit model
Tobit model
Results and discussion
H1 accepted
H2 rejected
H3 accepted
H4 rejected
Conclusion
Limitations
Not applicable to all types of industrial companies
Retained earnings are positively and
significantly related to the probability of dividend payou