DETERMINANTS OF DIVIDEND PAYOUT RATIO: A STUDY OF KSE MANUFACTURING FIRMS IN PAKISTAN

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Volume 13 Issue 1 2017

Author(s):

Rehab khan
M.phil in Business Economics University of engineering and technology, Lahore.
rehab.khan35@yahoo.com

Jamshad Khurshid Meer
Senior Manager for Portfolio Management & Investments, Standard Chartered Bank Ltd, Karachi.
jamshed.meer@gmail.com

Rab Nawaz Lodhi
Institute of Business and Management, University of Engineering and Technology Lahore, Pakistan.

Faisal Aftab
Director ORIC Bahria University Islamabad, Pakistan.
Abstract The motive and cause of this study are pursuing to examine the determinants of dividend payout ratios of KSE listed companies in Pakistan. This study used the data of ten sectors of the cement industry and these companies are listed in the Karachi stock exchange, and data is driven by 2003-2012, enlarge the current research on dividend payout policy. The panel regression model was used to estimate the results. Corporate profitability has always been considered as a leading independent variable of the dividend payout ratio. There are multitudinous factors other than corporate profitability that influence dividend decisions of the firm like taxes, cash flow and debt to equity, sales growth. This research analyzes that profitability, tax, and cash flow have a significant relation with dividend payout ratio. And debt to equity and sales growth has an insignificant relationship with dividend payout ratio. This research failed to collect the data of different sectors listed on KSE except for the Cement industry. And collect the data of only one sector (cement). Other determinants exist that have a huge effect on payout ratio, than these which are included in the research.
Keywords Dividends, Determinants, KSE, Pakistan
Year 2017
Volume 13
Issue 1
Type Short Report
Recognized by Higher Education Commission of Pakistan, HEC
Category "Y"
Journal Name IBT Journal of Business Studies
Publisher Name ILMA University
Jel Classification A12, B26
DOI http://dx.doi.org/10.46745/ilma.jbs.2017.13.01.02
ISSN no (E, Electronic) 2409-6520
ISSN no (P, Print) 2416-8393
Country Pakistan
City Karachi
Institution Type University
Journal Type Open Access
Type of Review Double Blind Peer Reviewed
Format PDF
Paper Link http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.1/2.pdf
Page 12-24
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