Determinants of Dividend Policy in Kosovo Banking Industry

Abstract

As salary to Managers and employees is dividend to Shareholders. There are several determinants influencing dividend policy on the banking Industry. A stable dividend policy gives positive signal to shareholders and can be seen as positive on the bank performance. In order to distribute dividend several factors are considered. With multivariable linear regression and the data from the “Financial Stability Report” of the Central Bank of Kosovo this paper tends to present the determinants which indicate the decision on following a certain policy. Results received from this paper is tended to inform the reader on understanding the role of determinants on dividend distribution as well as new researchers on having an additional opinion related to their future research.