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    This document analyzes the correlation between various determinants of dividend policy for auto companies from 2012 to 2017 using 58 observations. It finds a strong positive correlation between dividend, earnings, and operating cash flow, but insignificant correlations with debt, size, and largest shareholders. There is a moderate positive correlation with growth and investment opportunities. It specifically examines the relationship between dividend per share and dividend policy, finding a negative but insignificant relationship, thus failing to reject the null hypothesis of no relationship.

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    coorelation

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    This document analyzes the correlation between various determinants of dividend policy for auto companies from 2012 to 2017 using 58 observations. It finds a strong positive correlation between dividend, earnings, and operating cash flow, but insignificant correlations with debt, size, and largest shareholders. There is a moderate positive correlation with growth and investment opportunities. It specifically examines the relationship between dividend per share and dividend policy, finding a negative but insignificant relationship, thus failing to reject the null hypothesis of no relationship.

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    5 views2 pages

    Auto Mobile Sector: Correlation Analyses

    Uploaded by

    Alpha
    This document analyzes the correlation between various determinants of dividend policy for auto companies from 2012 to 2017 using 58 observations. It finds a strong positive correlation between dividend, earnings, and operating cash flow, but insignificant correlations with debt, size, and largest shareholders. There is a moderate positive correlation with growth and investment opportunities. It specifically examines the relationship between dividend per share and dividend policy, finding a negative but insignificant relationship, thus failing to reject the null hypothesis of no relationship.

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    © All Rights Reserved
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    of 2

    Auto Mobile sector

    Correlation Analyses

    Covariance Analysis: Ordinary

    Sample: 2012 2017

    Included observations: 58

    Correlation
    Determinants of
    Probability Dividend Policy 

    Dividend 1.000000

    ----- 

    Earning 0.897403
    0.0000

    Cash flow operating  0.524637


    0.0000

    Debt  -0.072278

    0.5898

    size 0.043286

    0.7470

    Growth  0.422267

    0.0010

    Investment
    opportunity  0.377959

    0.0034

    Largest Shareholders  -0.126143

    0.3454
     Dividend per share and Dividend policy:

    Hypotheses:

     Null hypotheses: There is no relationship between Dividend per share and Dividend
    policy
     Alternate hypothesis: There is a relationship between. Dividend per share and Dividend
    policy

    Interpretation:

    Hence, there is a negative and insignificant relationship between Dividend per share and
    Dividend policy because the correlated value is -151 which shoes the negative relation and
    significance level is 0.425 which is greater than 0.005 that shows insignificant relation. So, we
    accept null hypotheses and reject alternate hypotheses.

     Earning per share and Dividend policy

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