Revue des sciences commerciales et de gestion

The Impact Of Dividend Policy On Large Private Algerian Firms’ Performance

Auteurs : Bennamane Kaouther .

Résumé

This study investigates how dividend policy affects the performance of major private companies in Algeria. The analysis uses panel data covering 61 firms over the period 2019–2023, resulting in a total of 305 firm-year observations. To examine the link between dividend policy and firm performance, a linear regression model for panel data is applied, allowing the combination of cross-sectional and time-series information. Firm performance is assessed using the Return on Assets (ROA), while dividend policy is proxied by the dividend payout ratio (DPR). Several control variables are included to evaluate their effects on performance. The results indicate that dividend policy positively influences firm performance, implying that companies distributing dividends tend to perform better. Furthermore, liquidity and firm size are positively associated with performance, whereas asset tangibility and leverage show a negative relationship.

Mots clés

Dividend policy ; Firm performance ; Panel data ; Large private Algerian firms