Corporate dividend policy theory and practice : the Thailand public company experience | |
| Author | Lily, Jaratin |
| Call Number | AIT RSPR no.SM-06-48 |
| Subject(s) | Dividends--Thailand Corporations--Thailand--Finance |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report no. SM-06-48 |
| Abstract | This study tries to analyze the current dividend policy practices of Thailand public firms by taking SETI 00 companies as the benchmark. The study is conducted through model testing and questionnaire survey. Study results from model testing show that stability of earnings and debt structure are inversely related to firm's payout ratio. Our survey results show that stability of future earnings, a sustainable change in earnings, the availability of profitable investment opportunities and market price of stock are important factors to determine dividend policy. The survey results also suppo1t the Lintner's behavioral model of dividend policy namely continuity of stable dividend policy and firm's preference of target payout ratio. In overall, we can conclude that SETIOO companies follow the modified residual dividend policy because most of the firms try to maintain their historic dividends although the dividend decision was made after the investment decision. Evidence of clientele and signaling explanation also exist in practice but do not give effective explanation. The implication of this study is if dividend policy does matter, management cannot do dividends decision without taking consideration an integral pa1t of business strategies including both financial and investment decision. We also can conclude that there is no absolute explanation for dividend policy as it might be different across countries because of the different characteristic of market, objectives, time period and strategies. |
| Year | 2006 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Venkatesh, Sundar; |
| Examination Committee(s) | Paul, Himangshu ;Kouwenberg, Roy ; |
| Scholarship Donor(s) | Public Service Department of Malaysia; |
| Degree | Research Studies Project Report (M. BA.) - Asian Institute of Technology, 2006 |