How Ghanaian managers view dividend policy

PurposeThis study aims to examine the theories that explain Ghanaian managers' dividend policy and the factors that influence dividend decisions. The study underscores the role of managers in shaping dividend policies to align corporate financial strategies with stakeholder goals.Design/methodology/approachThis study was conducted mainly through questionnaires addressed to the managers of firms in Ghana Club 100 and those listed on the Ghana Stock Exchange.FindingsThe survey evidence shows support for signalling theory, agency considerations and Lintner's (1956) partial adjustment model. Additionally, catering theory, the bird-in-hand perspective, maturity hypotheses and residual dividend policy also underpin managerial decision-making in Ghana. The most important factors influencing Ghanaian firms' dividend policy are liquidity constraints such as availability of cash, level of current earnings, stability of earnings and level of expected future earnings. Overall, the evidence suggests that Ghanaian managers adopt a multifaceted approach to dividend decision-making, integrating various theoretical perspectives to address firm-specific and market conditions.Originality/valueThe study contributes to the scant evidence on managers' perspectives on dividend policy in frontier markets. These insights are relevant not only for academics seeking to extend theoretical frameworks to frontier markets but also for policymakers and investors aiming to enhance corporate financial practices and governance in similar contexts.