How Does Firm Characteristics Affect the Choices Dividend Payout? Evidence of Firms Listed in the Tunisian Stock Exchange

Abstract

This article investigates the relationship between some financial criteria and dividend payout policy choices of Tunisian firms’ context. Specifically, we examine whether the determinant the firm characteristics affect the firms’ policy choices to pay dividend. Overall, this research adds to our understanding of firms’ dividend payout policy choices. It shows that the all included variables present strongest motivation to the dividends payout choice. The results also suggest that good financial performers are more likely to pay dividends more regularly. First, evidence on the relationship between the various types of financial characteristics and firms’ choice of dividend payout frequencies should be useful to investors. Second, the findings of this study provide positive effects of firm performance, total of sales, firm value, and firm growth level on the dividend payout frequencies. The analysis indicates that dividend policy is related to firm value and there is a positive association between the firm’s share pare price value and the dividend policy payout.