Nexus between financial leverage and dividend payout from manufacturing firms listed at Dar es Salaam stock exchange, Tanzania

Figures & data

Table 1. Classification of companies listed at DSE.

S/N	Name	Sector
1.	CRDB	Banks, Finance & Investments
2.	DCB Commercial Bank Plc (DCB)	Banks, Finance & Investments
3.	The Dar es Salaam Stock Exchange (DSE)	Banks, Finance & Investments
4.	East African Breweries Limited (EABL)	Industrial & Allied
5.	JATU PLC	Industrial & Allied
6.	Jubilee Holdings Limited	Banks, Finance & Investments
7.	Kenya Airways Limited	Commercial Services
8.	KCB Group	Banks, Finance & Investments
9.	Maendeleo Bank Plc (MBP)	Banks, Finance & Investments
10.	Mwalimu Commercial Bank PLC.	Banks, Finance & Investments
11.	Mkombozi Commercial Bank Plc (MKCB)	Banks, Finance & Investments
12.	Mufindi Community Bank Ltd (MuCoBa)	Banks, Finance & Investments
13.	National Investment Company Limited	Banks, Finance & Investments
14.	NMB Bank Plc (NMB)	Banks, Finance & Investments
15.	The Nation Media Group (NMG)	Commercial Services
16.	Precision Air Services Plc	Commercial Services
17.	Swala Oil and Gas (Tanzania) plc	Oil & Gas
18.	Swissport Tanzania Plc	Commercial Services
19.	Tanzania Breweries PLC	Industrial & Allied
20.	The Tanzania Cigarette Company (TCC),	Industrial & Allied
21.	Tanga Cement PLC	Industrial & Allied
22.	TCCIA Investment Company Limited [TICL]	Banks, Finance & Investments
23.	TOL Gases Limited	Industrial & Allied
24.	Tanzania Portland Cement Company Ltd. (TPCC)	Industrial & Allied
25.	TATEPA(TTP)	Industrial & Allied
26.	Uchumi Supermarkets Ltd	Commercial Services
27.	Vodacom Tanzania Limited	Telecommunication
28.	Yetu Microfinance bank	Banks, Finance & Investments

Source: DSE (2023).

Table 2. Categories of companies.

S/N	Company category	Number of companies
1	Banks, Finance & Investments	13
2	Industrial & Allied	8
3	Commercial Services	5
4	Oil & Gas	1
5	Telecommunication	1
	Total	28

Source: DSE (2023).

Table 3. Descriptive statistics for manufacturing firms listed in DSE.

Variable		Mean	Std. Dev.	Min	Max	Observations
Company	Overall	4.5	2.301	1	8	N = 105
	Between		2.449	1	8	n = 7
	Within		0	4.5	4.5	T = 15
Year	Overall	2008	4.339	2001	2015	N = 105
	Between		0	2008	2008	n = 7
	Within		4.339	2001	2015	T = 15
Dividend	Overall	2.029	1.519	0.1	4.500	N = 105
	Between		1.526	0.1	4.207	n = 7
	Within		0.501	−2.078	2.875	T = 15
Firm size	Overall	0.305	0.217	0.1	0.700	N = 105
	Between		0.231	0.1	0.700	n = 7
	Within		6.03E-17	0.305	0.305	T = 15
Leverage	Overall	4.178	2.378	0.13	9	N = 105
	Between		2.532	0.13	9	n = 7
	Within		8.47E-16	4.178	4.178	T = 15

Source: Stata Output (2023).

Table 4. Pairwise correlations.

Variables	(Dividend)	(Firm size)	(Leverage)
Dividend	1.000
Firm size	−0.215**	1.000
Leverage	0.698***	0.050	1.000

Source: Stata Output (2023).

*** p < 0.01, ** p < 0.05, * p < 0.1.

Table 5. Multicollinearity test.

Variable	VIF	1/VIF
Firm size	3.60	0.278
Leverage	1.22	0.740
Mean VIF	4.82

Source: Stata Output (2023).

Table 6. Serial autocorrelation test.

Wooldridge test for autocorrelation in panel data
H0: no first-order autocorrelation
F (1, 4) = 2.56
Prob > F = 0.39

Source: Stata Output (2023).

Table 7. Skewness/Kurtosis Tests for normality.

Variable	Obs	Pr(Skewness)	Pr(Kurtosis)	adj chi^2(2)	Prob > chi^2
Dividend	120	0.0423	0.303	2.36	0.560
Firm size	120	0.0322	0.400	3.26	0.130
Leverage	120	0.059	0.396	4.39	0.111

Source: Stata Output (2023).

Table 8. Panel unit root tests for the variables at level.

Variable	Statistic	P-value
Dividend
Unadjusted t	−6.091	0.000
Adjusted t*	−5.5814
Firm size
Unadjusted t	−4.056
Adjusted t*	−0.346	0.000
Leverage
Unadjusted t	−9.108
Adjusted t*	−7.282	0.000

It tests the following hypothesis.

Ho: Panels contain unit roots.

Ha: Panels are stationary.

Table 9. Breusch and Pagan Lagrangian multiplier test for random effects.

Estimated results:
	Var	sd
Dividend	2.305	1.518
E	0.269	0.518
U	1.485	1.219
Var(u)=0
Test	chibar2(01) =	378.770
	Prob > chibar2=	0.000

Source: Stata Output (2023).

Table 10. Hausman specification test.

Variable	Coefficient		Difference	Standard error
	B	B	b-B	sqrt(diag(V_b-V_B))
	Fixed	Random		S.E.
Firm size	−2.937	−3.587	0.650	0.388
Leverage	−13.709	−9.480	−4.228	1.807
Liquidity	−0.046	−0.027	−0.020	0.165
Chi-square test value	0.088
P-value	0.077

Source: Stata Output (2023).

Table 11. Determinant variables on dividend payout.

Dividend	Coef.	St.Err.	t-value	P-value	[95% Conf	Interval]	Sig
Firm size	−4.523	3.596	−2.635	0.001	−10.958	0.486	*
Leverage	0.263	3.596	4.336	0.002	0.177	0.519	***
Constant	2.235	3.596	36.22	0.003	−3.623	6.355	***
Mean dependent var		3.05		SD dependent var		3.25
Overall r-squared		0.596		Number of obs		107.33
Chi-square		31.63		Prob > chi^2		0.01
R-squared within		0.002		R-squared between		0.816

Note: The cluster robust standard error was employed.

*** p < .01, ** p < .05, * p < .1.

Source: Stata Output (2023).

DSE. (2023). Annual financial report for the year ended. https://www.dse.co.tz/storage//securities/NMG/financial_statement/Annual/xZi01bcc6utLPJnimPYWUh54nnJYJ8FqKSBtAML2.pdf 2023. https://www.dse.co.tz/storage//securities/NMG/financial_statement/Annual/xZi01bcc6utLPJnimPYWUh54nnJYJ8FqKSBtAML2.pdf

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STATA OUTPUT. (2023). IVREG2: Stata module for extended instrumental variables/2SLS and GMM estimation. Boston College.

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Stephen, K. (2023, August). Factors influencing dividend payment decisions: A case of mutual funds in Tanzania. In Proceedings International Conference on Business, Economics & Management, 1 (pp. 579–591). https://doi.org/10.47747/icbem.v1i1.1240

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Data availability statement

The author takes the published data from reliable source namely Dar es Salaam Stock exchange (DSE). The data include the financial statements of the manufacturing firms listed at DSE. This data is open access through DSE website everyone can access and use this data. All analysis of the paper, the data is extracted from DSE website and everyone who interesting with the data free to download from DSE website.