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

Rehab Khan (), Jamshad Khurshid Meer (), Rab Nawaz Lodhi and Faisal Aftab
Additional contact information
Rehab Khan: M.phil in Business Economics University of engineering and technology, Lahore.
Jamshad Khurshid Meer: Senior Manager for Portfolio Management & Investments, Standard Chartered Bank Ltd, Karachi
Rab Nawaz Lodhi: Institute of Business and Management, University of Engineering and Technology Lahore, Pakistan
Faisal Aftab: Director ORIC Bahria University Islamabad, Pakistan

IBT Journal of Business Studies (JBS), 2017, vol. 13, issue 1, 12-24

Abstract: Purpose Motive and cause of this study is pursuing to examine the determinants of dividend payout ratios of KSE listed companies in Pakistan.Design This study used the data of ten sectors of cement industry and these companies are listed in Karachi stock exchange, and data is drives by 20032012, enlarge the current research on dividend payout policy.Panel regression model used to estimate the results.Corporate profitability has always been considered as a leading independent variable of dividend payout ratio.Findings There are multitudinal 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 insignificant relationship with dividend payout ratio.Research Limitations This research failed to collect the data of different sectors listed on KSE except Cement industry.And collect the data of only one sector cement.There are other determinants exist that have a huge effect on payout ratio, than these which are included in the research.

Keywords: Dividends; Determinants; KSE; Pakistan (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.1/2.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:13:y:2017:i:1:p:12-24

DOI: 10.46745/ilma.ibtjbs.2017.131.2

Access Statistics for this article

More articles in IBT Journal of Business Studies (JBS) from Ilma University, Faculty of Management Science Contact information at EDIRC.
Bibliographic data for series maintained by Syed Kashif Rafi ().