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Determinants of Dividend Payout Policies of Dar es Salaam Stock Exchange-listed Manufacturing Companies in Tanzania Dividend payout policy, Earnings per share, and Listing Age
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Abstract
This study examined the determinants of dividend payout policies of manufacturing companies listed in Tanzania. The study used a quantitative research approach, specifically the generalised method of moments estimator to estimate the determinants of dividend payout policies of manufacturing companies listed on the Tanzania bourse using data extracted from the annual reports of five manufacturing companies listed from 2007 to 2021. The dividend policy is proxied by dividends per share. The results reveal that listing age and earnings per share (EPS) have a significant positive relationship with dividend payout policies of manufacturing companies listed on the Dar es Salaam stock exchange in Tanzania. On the other hand, the study found that the operating cash flow, size of firm, liquidity, leverage profitability and share price did not affect dividend policy of listed manufacturing companies. As such, corporate managers of manufacturing listed companies can use listing age and EPS to determine the dividend pay-out policy.
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