Mature firms have high retained earnings as… This work examined the determinants of retained earnings of quoted manufacturing firms in Nigeria. Earnings, retained earnings, and book-to-market in the cross section of expected returns Ray Bally 1, Joseph Gerakos2, Juhani T. Linnainmaa3,4 and Valeri Nikolaev 1University of Chicago Booth School of Business, United States 2Tuck School of Business at Dartmouth College, United States 3University of Southern California Marshall School of Business, United States 4National Bureau of … The dividends should, generally, be paid out of current year’s earnings only as the retained earnings of the previous years become more or less a part of permanent investment in the business to earn current profits. • A dividend policy is the policy a company uses to decide how much it will pay out to shareholders in the form of dividends. The Fundamental Determinants of Growth. Again, market conditions give a direction to the retained earnings. Determinants of Dividend Payout Ratios A Study of Swedish Large and Medium Caps Authors: ... profit, risk and size. the retained profits of companies. This can be attributed to the fact that non-listed firms are generally smaller and are more likely to be owner-managed and thus, profits could be a major source of . Also the importance of retained earnings as a source of finance for cement sector companies is also studied in the paper. Bank profits are high in Sub-Saharan Africa (SSA) compared to other regions. Keywords: Retained Earnings, Multiple linear regression, PAT, DP, RES, CR, DER, INVS, INV, DEP. ... greater the need for tax shield Pecking-order theory Negative correlation Greater profits greater retained earnings internal funding reduced leverage 15. The past trend of the company’s earnings should also be kept in consideration while making the dividend decision. The determinants of working capital are as given below: 1. Determinants of capitalstructure 1. Determinants of Dividends in Indian Pharmaceutical Companies Dr.T.Sobha Rani MBA*, ... (called retained earnings), or it can be distributed to shareholders in the form of dividends. This study investigates the determinants of profitability for industrial firms in Oman. The study is anchored on Pecking Order Theory while an ex-post facto research design was adopted wherein secondary data sourced from financial statements of chosen quoted manufacturing firms in Nigeria covering a period of 10 years (2009 to 2018) were used for analysis. determinant of a firm's performance or not A related controversy is neither the fact that internal financing (using retained profit) is empirically correlated with investment implies that firms are credit constraint and therefore depends on internal funding through retained profit for investment. The paper is structured as follows. Retained earnings are called under different names such as self finance, inter finance, and plugging back of profits. explore the determinants of the capital structure of Chinese listed companies. Retained earnings are a type of internal equity financing, that is, internally generated financing sources (Nguyen and Rugman, 2015). This paper uses a sample of 389 banks in 41 SSA countries to study the determinants of bank profitability. They define that profits of the firms always matter and displayer of the good dividends. The soundest way of incorporating growth into value is to make it endogenous, i.e., to make it a function of how much a firm reinvests for future growth and the quality of its reinvestment. It is debated that there is no obligation either formal or implied, to earn any profit by investing retained earnings. We test our hypotheses using official Chinese ODI data collected between 1984 and 2001. The data used in the research are secondary data collected during a time period of five years, between 2006 and 2010. Retained earnings are referred to as that part of earnings or profit that is not distributed to the shareholders as dividends. The firms retained some fund from their profit for their upcoming situation such like expansion of business/projects etc, so the firm can use this source also for financing which is very cheap as compared to other.