A REPORT ON THE DIVIDEND PAYOUT POLICY OF BEXIMCO PHARMACEUTICALS LTD.

Abstract

Beximco Pharmaceuticals Ltd. today symbolizes a name – a state of mind. Today it is a well known name in the Pharmaceutical world; it manufactured pharmaceutical finished formulation products, large volume parenterals and active pharmaceutical ingredients (APIs). All these are possible due to innovative ideas, tireless efforts, perseverance and dedication with self confidence which contributed to successful achievements. It was established in 1976 and converted into a public limited company in 1985. Beximco Pharmaceuticals Ltd. is the largest pharmaceutical company in Bangladesh and it has been continuously keeping its position on one of the top companies among all national and multinational companies. The main objectives of this study are to give a brief idea about dividend payout policy, debt to equity ratio and dividend per share. I have collected primary data from personal observation, informal discussion and formal discussion with the employees of Beximco Pharmaceuticals Ltd. Secondary data have been collected from relevant books, newspapers, Beximco Pharmaceuticals Ltd. annual report 2001-2010, published documents , office circular. I have noticed some positive and negative aspects of Beximco Pharmaceuticals Ltd. like strong manpower, healthy corporate environment, administrative problem and technological problem. This paper examines the leading determinants that affecting the dividend payment by the management of Beximco Pharmaceutical Ltd. Beximco pharmaceutical Ltd. declared stock dividend from year 2001 until 2010 chosen to be analyzed on how the changes in dividend payment decision vary according with the predictors‟ variables. The relationship between independent variables with the current dividend per share as dependent variable is empirically analyzed through the Open Ended Questionnaire. The study confirms the fact that debt equity ratio was the important determinants of dividend payment.