A study of financial ratios affecting dividend payments - A case study of companies listed on The Stock Exchange of Thailand that has paid dividends for 10 consecutive years

Abstract

This research studies the financial ratios that affect the dividend payment rate of companies listed on the Stock Exchange of Thailand that have paid dividends continuously for 10 years. The study collected secondary data from financial ratios of those companies, total of thirteen companies, between 2012 and 2022. The statistics used for analysis include Descriptive statistics to analyze variable characteristics, analysis of Correlation Coefficients, Tolerance statistics, and Variance Inflation Factor (VIF) to examine problems of Multicollinearity, Kolmogorov- Smirnov test to assess the normal distribution of the dependent variable and Multiple regression analysis to examine the relationship between independent variables and a dependent variable.

The results of the study found that at the statistical confidence level of 95 percent, this research did not find a statistically significant influence of financial ratios on dividend payments as measured by the dividend payout ratio. However, the research found that there are financial ratios, including current ratio, net profit margin, return on equity, and debt ratio have positive relationship with dividend payout ratio following the research hypotheses.