IQ Research Journal-Open Access-ISSN:2790-4296

The Effects Of Dividend Policy On The Capital Structure

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Authors: Oscar Ebanja Monono. Paper Title: The Effects Of Dividend Policy On The Capital Structure IQ Research Journal of IQ res. j. (2022)1(12): pp 01-020. Vol. 001, Issue 12 12-2022, pp. 01934-01954

ABSTRACT

In Cameroon, companies have no standard dividend policy. The Dividend policy is measured on the dividend payout ratio Which determines the value of the Dividend per share. And the Dividend payout ratio would have an effect on the company’s debt and equity. The main objective of the study is to
investigate the impacts of dividend payout on the equity and debt of Ntarikon Cooperative Credit Union in Cameroon. The specific objectives of the study were; to assess the effects of Dividend policy (DPR) on Debt to equity, to evaluate the effects of Dividend payout on Earnings per share, to determine
the impacts of Dividend payout on Return on equity, and to assess the effects of Dividend payout on the cost of equity. Ratios were used to collect data. Data was secondary from the financial statements of the cooperative credit union. The study made use of quantitative and qualitative data. A multiple regression analysis was used to test the hypotheses. The results show that dividend policy has significant effects on debt to equity, dividend per share, and return on equity. But that there was no significant effect of the dividend policy on the cost of equity. It was recommended that the management of Ntarikon Cooperative Credit Union should increase the dividend payout in order to attract more equity capital

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