Purpose The purpose of this paper is to identify the determinants of dividend policy in an emerging and developing market. Design/methodology/approach The study employs a quantitative approach using 191 Sri Lankan firms and 1,337 firm-year observations as the sample. The authors apply a Binary Logistic Regression model to uncover the determinants of the propensity to pay dividends, and a Fixed Effect Panel Regression to investigate the determinants of dividend payout. Findings The authors identify past dividend decision, earnings, investment opportunities, profitability, free cash flow (FCF), corporate governance, state ownership, firm size and industry influence as the key determinants of propensity to pay dividends. In addition past dividends, investment opportunities, profitability and dividend premium are identified as the determinants of dividend payout. Moreover, there is a feedback between dividend yield and profitability in one lag and between dividend yield and dividend premium in two lags, as short-term relationships. Hence, past dividend decision or payout, profitability and investment opportunities are a common set of determinants with implications for both propensity to pay dividends and its payout. The findings support theories of dividends such as signaling, outcome, catering, life cycle, FCF and pecking order. Practical implications The findings are important for investors, managers and future research. Investors should focus on the determinants identified by our study when making investment decisions whereas managers should practice the same when formulating appropriate dividend policies for their firms. Future research should rely on propensity to pay dividends and its payout simultaneously to promote a theoretical consensus on the dividend determinant puzzle. Originality/value This is the first study that investigates determinants of propensity to pay dividends and dividend payout along with short-term relationships in a single study.

Collaborative supply networks in the international clothing industry are of major economic significance in many countries, particularly in developing economies. The sector has gone through substantial changes in the last decade with the abolition of trade barriers and the increasingly dominant position of major retailers and brand owners in supply networks. The sustainability of clothing supply networks is subject to increasing public scrutiny. In this work, the characteristics and operation of collaborative clothing supply networks have been analyzed. Two contrasting supply networks -one for a major leading brand retailer and one for a major supermarket retailer -are analyzed and compared from a sustainability perspective.The challenges in assessing economic, social and environmental aspects of sustainability at a network level are highlighted. The results show a minimum compliance culture in the supermarket supply network, whereas the leading brand retailer demonstrates a much higher level of proactive and positive sustainability practices and actions across the network. The study highlights the benefits of a strongly collaborative network in helping to facilitate and enhance a sustainability agenda. The implications of the study are discussed for retailers, manufacturers and policy makers, as well as for the governance of collaborative supply networks more generally.

Purpose -The study seeks to classify retailer-driven clothing supply networks to provide new insights on their structure and operation and examine whether or not differences are evident in the types of networks operated by different types of retailer. Design/methodology/approach -A large-scale empirical investigation is conducted of 73 supply networks operating with 26 Sri Lankan apparel manufacturers, representing 39 major retailers. In-depth interviews and survey methods are used, representing qualitative and quantitative approaches, respectively. Findings -Six primary types of clothing supply network are identified. A strong association is shown between retailer type and network type, specifically for networks operated by established brand retailers and by value players such as supermarket retailers. The typical attributes of the supply networks of each type of retailer are compared. Research limitations/implications -Although the empirical study is large, it is limited to supply networks with prime manufacturing partners located in Sri Lanka. The country is important in global clothing production, serving many prominent global retailers. Studying and comparing supply networks anchored in other regions will provide a valuable comparison with the findings here. Practical implications -The study has implications for clothing retailers in analyzing, managing and developing their networks. For manufacturers, it provides insights to understand the network structures operated by different types of retailer for different classes of garment. The study also offers insights for policy makers in clothing producing regions. Originality/value -A new empirically based classification is presented for clothing supply networks. The diversity in network types has not previously been shown. The comparison of networks of established brand retailers and value players provides empirical evidence of differences not reported previously. The findings enrich both the theoretical and empirical bases for sector-specific supply network studies.

No abstract

No abstract