Determinants of Dividend Policy in the UK

The purpose of this research is to investigate the determinants of dividend policy within the UK in non-financial industries’ and evidence is focused on different FTSE 250 companies. The dividend policy of a company is decided by various considerations as a consequence. Multiple regression analysis is used to analyse the collected data from DataStream that SPSS is used to analyse. Time and industry are differed across these considerations. This research will demonstrate the different factor among correlation and regression after hypotheses. The factors would be analysed in different data of companies that the figure comes from DataStream to obtain the details financial data of these firms between 2005 and 2014. Moreover, the analysis will base on the independent factor of hypotheses. The conclusion perhaps shows that the determinants of dividend policy would include several reasons. The study shows that the following are related to dividend policy. It includes dividends policy, market value, PER, dividend per share, earnings per share, total return, cash flow, common stock, firm size, sales, leverage etc. However, it still has limitation that some factor which cannot be seen as number might impact the result, so it needs to be more searches in the future