Influencing factors of dividend policy in Bangladesh: Survey evidence from listed banks in DSE

A firm considers various factors when approaching a dividend policy decision. To analyse the determinants of dividend policy in the context of Bangladesh, questionnaire survey has been done from financial decision makers of sample banks. The non-parametric test and factor analysis is used for interpreting results. In the first stage, the factors -tax clientele factor, legal and capital ratio factor, liquidity factor, earnings and catering factor are considered in dividend decision- making. Then in the second stage, the companies follow the investment opportunity and rate of return from the investment. In the next stage, dividend decision is made mainly on the previous years’ dividend payment pattern. The decision maker, investors and other stakeholders should follow these findings.