Dividend Theories Practices in Stock Market of Bangladesh: Study on Manufacturing Sectors

Abstract

Corporate dividend behaviour is looked upon in many ways by the experts in the area of financial literature. To examine the application of dividend models practices in manufacturing sector in Bangladesh, it is taken the views of dividend policy makers’ covering the divergent aspects of dividend theories. The parametric test, nonparametric test and factor analysis are used for inferring the result. In the manufacturing sector, among the theories, the catering theory, signalling theory and dividend relevancy theory are important theories in the context of Bangladesh. The decision maker, investors and other stakeholders should follow these findings for taking decision.