Research Article | | Peer-Reviewed

The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda

Received: 13 October 2022     Accepted: 11 November 2022     Published: 19 March 2024
Views:       Downloads:
Abstract

This paper titled the effects of dividend policy on the growth of micro financial institutions in Bamenda has the objectives to look at the effects of dividend rate on the growth of MFIs Bamenda and the effect of decision of dividend payment on the growth of MFIs in Bamenda. The paper employed the use of secondary data which was accumulated through from 49 Micro Financial Institutions in Bamenda which was the population, the ordinarily least squares model was used. Descriptive statistics was utilized and analysis was done using the SPSS25 program application. Moreover, interpretations were made based on the results gotten. The study demonstrated that dividend rate and decision of dividend payment had a positive and significant effect on the growth of Micro Financial Institutions in Bamenda, the results also revealed that Access to capital markets has a negative insignificant effect on assets, therefore policies that enhance participation in capital markets will lead to a decrease in assets. The paper suggests that MFIs should set appropriate dividend rates so as to continue growing their institutions. MFIs that don't pay dividend but aim to grow ought to begin paying dividend to members.

Published in Journal of Business and Economic Development (Volume 9, Issue 1)
DOI 10.11648/j.jbed.20240901.12
Page(s) 10-20
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Dividend Rate, Decision of Dividend Payment Growth, Micro Financial Institutions

References
[1] Amidu, M., & Abor, J. (2006). Determinants of dividend payout ratios in Ghana. The journal of risk finance.
[2] Amidu, Mohammed. 2007. How does dividend policy affect the performance of the firm on the Ghana Stock Exchange? Investment Management and Financial Innovations.
[3] Anh Huu Nguyen, Cuong Duc Pham, Nga Thanh Doan, Trang Thu Ta, Hieu Thanh Nguyen and Tu Van Truong, (2021) the effect of dividend payment on firm’s financial performance: an empirical study of Vietnam.
[4] Arif, (2019). Determinants of dividend policy: a sectoral analysis from Pakistan. International Journal of Business and Behavioral Sciences.
[5] Ayub Khan Mehar (2005), Corporate governance and dividend policy.
[6] Batool Samavia, Khan Chowdhury Ahmed Jalal, Maliha Sarfraz and Muhammad Aqeel Ashraf (2014) study of modern nano enhanced techniques for removal of dyes and metals Journal of Nanomaterials.
[7] Blanche (2003) Sampling Methods in Research Methodology; How to Choose a Sampling Technique for Research International Journal of Academic Research in Management (IJARM).
[8] Bushra, A, DeAngelo, L., & Skinner, D. J. (2012). The Determinants of Corporate Dividend Policy in Pakistan (Doctoral dissertation, © Lahore Schoool of Economics). The Lahore Journal of Economics.
[9] COBAC (Banking Commission for Central African States) (2002) Reglement CEMAC Relatif aux Conditions d'Exercice et de Controle de l'Activitite de la Microfinance. 01/02/CEMAC/UMAC/COBAC, Cameroon: COBAC.
[10] Coleman, M. (2007) Gender and Educational Leadership in England: A Comparison of Secondary Headteachers’ Views over Time. School Leadership & Management.
[11] Edwins Edson Odero (2018) the effect of dividend policy on the growth of micro finance organizations University of Namibia Faculty of Economic and Management Sciences Southern Campus.
[12] Fotabong, L. A. (2012). The Microfinance Market of Cameroon: Analyzing trends and current developments.
[13] Gamayuni, R. R. (2015). The effect of intangible asset, financial performance and financial policies on the firm value. International journal of scientific & technology research.
[14] Hardy, D. C., Holden, P., & Prokopenko, V. (2002). Microfinance Institutions and Public Policy. IMF Working Paper, Monetary and Exchange Affairs Department, The International Monetary Fund.
[15] Hudon, M. (2006). Management and Financial Performance: Do Subsidies Matter? Working paper CEB, No. 05/15, Solvay Business School, UniversitéLibre de Bruxelles.
[16] Imran, K. (2011). Determinants of dividend payout policy: A case of Pakistan engineering sector. The Romanian Economic Journal.
[17] Kothari (2004) Research Methodology Methods.
[18] Kumar, J. (2006). Corporate governance and dividends payout in India. Journal of Emerging Market Finance.
[19] Kuwari Duha Al (2009), Determinants of the Dividend Policy in Emerging Stock Exchanges: The Case of GCC Countries.
[20] Lintner, J. (1956). Distribution of incomes of corporations among dividends, retained earnings and taxes American Economics Review.
[21] Miller, M. H. and Modigliani, F. (1961), “Dividend policy, growth, and the valuation of shares”, Journal of Business.
[22] Nazir, Hazrat Usman, Shahab e Saqib (2010), The Impact of Dividend Policy on Stock Price Volatility: A Case Study of Selected Firms from Textile Industry in Pakistan.
[23] Ngechu, M. (2004) Assessment of the Factors Causing Senior High Students Involvement in Examination Malpractice in the Takoradi Metropolis of Ghana Open Journal of Social Sciences, Vol. 9.
[24] Rehan Sandra (2013) Reproductive aggression and nestmate recognition in a subsocial bee.
[25] Rosenberg, (2004) "Learning by Using" and Technology Diffusion, Concordia University, Department of Economics.
[26] Sanjari Mahnaz, Fatemeh Bahramnezhad, Fatemeh Khoshnava Fomani, Mahnaz Shoghi, and Mohammad Ali Cheraghi (2015), Ethical challenges of researchers in qualitative studies: the necessity to develop a specific guideline.
[27] Vanroose, A. (2007). Microfinance and its macro-environment. MicroBanking Bulletin.
[28] Yin, R. K. (2003) Case Study Research: Design and Methods. 3rd Edition, Sage Open Journal of Social Sciences.
Cite This Article
  • APA Style

    Ngong, T. J., Thomas, N. D. (2024). The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda. Journal of Business and Economic Development, 9(1), 10-20. https://doi.org/10.11648/j.jbed.20240901.12

    Copy | Download

    ACS Style

    Ngong, T. J.; Thomas, N. D. The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda. J. Bus. Econ. Dev. 2024, 9(1), 10-20. doi: 10.11648/j.jbed.20240901.12

    Copy | Download

    AMA Style

    Ngong TJ, Thomas ND. The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda. J Bus Econ Dev. 2024;9(1):10-20. doi: 10.11648/j.jbed.20240901.12

    Copy | Download

  • @article{10.11648/j.jbed.20240901.12,
      author = {Tosam Joseph Ngong and Ndamsa Dickson Thomas},
      title = {The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda},
      journal = {Journal of Business and Economic Development},
      volume = {9},
      number = {1},
      pages = {10-20},
      doi = {10.11648/j.jbed.20240901.12},
      url = {https://doi.org/10.11648/j.jbed.20240901.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20240901.12},
      abstract = {This paper titled the effects of dividend policy on the growth of micro financial institutions in Bamenda has the objectives to look at the effects of dividend rate on the growth of MFIs Bamenda and the effect of decision of dividend payment on the growth of MFIs in Bamenda. The paper employed the use of secondary data which was accumulated through from 49 Micro Financial Institutions in Bamenda which was the population, the ordinarily least squares model was used. Descriptive statistics was utilized and analysis was done using the SPSS25 program application. Moreover, interpretations were made based on the results gotten. The study demonstrated that dividend rate and decision of dividend payment had a positive and significant effect on the growth of Micro Financial Institutions in Bamenda, the results also revealed that Access to capital markets has a negative insignificant effect on assets, therefore policies that enhance participation in capital markets will lead to a decrease in assets. The paper suggests that MFIs should set appropriate dividend rates so as to continue growing their institutions. MFIs that don't pay dividend but aim to grow ought to begin paying dividend to members.
    },
     year = {2024}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - The Effects of Dividend Policy on the Growth of Micro Financial Institutions in Bamenda
    AU  - Tosam Joseph Ngong
    AU  - Ndamsa Dickson Thomas
    Y1  - 2024/03/19
    PY  - 2024
    N1  - https://doi.org/10.11648/j.jbed.20240901.12
    DO  - 10.11648/j.jbed.20240901.12
    T2  - Journal of Business and Economic Development
    JF  - Journal of Business and Economic Development
    JO  - Journal of Business and Economic Development
    SP  - 10
    EP  - 20
    PB  - Science Publishing Group
    SN  - 2637-3874
    UR  - https://doi.org/10.11648/j.jbed.20240901.12
    AB  - This paper titled the effects of dividend policy on the growth of micro financial institutions in Bamenda has the objectives to look at the effects of dividend rate on the growth of MFIs Bamenda and the effect of decision of dividend payment on the growth of MFIs in Bamenda. The paper employed the use of secondary data which was accumulated through from 49 Micro Financial Institutions in Bamenda which was the population, the ordinarily least squares model was used. Descriptive statistics was utilized and analysis was done using the SPSS25 program application. Moreover, interpretations were made based on the results gotten. The study demonstrated that dividend rate and decision of dividend payment had a positive and significant effect on the growth of Micro Financial Institutions in Bamenda, the results also revealed that Access to capital markets has a negative insignificant effect on assets, therefore policies that enhance participation in capital markets will lead to a decrease in assets. The paper suggests that MFIs should set appropriate dividend rates so as to continue growing their institutions. MFIs that don't pay dividend but aim to grow ought to begin paying dividend to members.
    
    VL  - 9
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • Faculty of Economics and Management Sciences, University of Bamenda, Bamenda, Cameroon

  • Faculty of Economics and Management Sciences, University of Bamenda, Bamenda, Cameroon

  • Sections