IMPACT OF DIVIDEND POLICIES ON SUSTAINABLE CORPORATE GROWTH: AN EMPIRICAL ANALYSIS

Tóm tắt

This study delves into the influence of dividend policies on the sustainable
growth trajectories of corporations. By examining a comprehensive dataset
spanning a decade and encompassing 300 publicly traded companies, we aim to
decode the dynamics between dividend payout ratios and corporate
reinvestment behaviors and their collective impact on growth. Central to our
investigation are key financial metrics: the dividend payout ratio, which
represents the proportion of earnings distributed to shareholders as dividends,
and the reinvestment rate, which indicates the percentage of retained earnings
reinvested in the company for future growth. We employ multiple regression
models to explore how these financial strategies affect sustainable corporate
growth - a vital indicator of long-term corporate health and performance. Our
approach allows us to isolate the effects of dividend payouts from other variables
potentially influencing growth outcomes, thereby providing a clearer picture of
the direct and indirect impacts of these policies. The analysis not only quantifies
the relationship between dividend distribution practices and growth rates but
also assesses the broader implications for corporate sustainability in a
competitive economic environment. Through this empirical framework, the
paper seeks to offer insights into optimal dividend policies that promote sustainable growth, balancing shareholder returns with the need for corporate
reinvestment. This study contributes to the ongoing debate on the strategic
management of dividends and its significance for maintaining corporate vitality
in an evolving marketplace.