THE IMPACT OF FINANCIAL RATIOS ON DIVIDEND YIELDS: EVIDENCE FROM LISTED COMPANIES IN THE MARKET FOR ALTERNATIVE INVESTMENTS (MAI)
Keywords:
Financial Ratio, Dividend Yield, MAIAbstract
The objective of the study is to examine the impact of financial ratio proxies, such as liquidity, leverage, profitability and asset efficiency on dividend yield. The final sample of the study consists of 87 MAI-listed firms (367 firm-year observations). The study spans five years, from 2019 to 2023, and we use dividend yields to evaluate the dividend behavior of the sample firms. We test the hypotheses through a multiple regression analysis.
The research results show that return on assets (ROE) has a significant positive impact, whereas account receivable turnover has a significant negative impact on dividend yield. In addition, firm characteristics show a significant positive relationship between firm age and dividend yield. This study shows that according to agency theory and signaling theory, there is a relationship between profitability and the ability to send greater signals for dividend yield. It was also found that a longer operating period has an impact on the return on investment.
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