Banks dividend policy: Evidence from Pakistan

Kashif Imran, Muhammad Usman and Muhammad Nishat

Economic Modelling, 2013, vol. 32, issue C, 88-90

Abstract: The present study empirically investigates the factors that determine the dividend payout decisions among banks. For empirical analysis the data of sixteen banks listed in the Karachi Stock Exchange (KSE) are used. The results indicate that earning per share, last year's dividend payouts, capital ratio and size of the bank are crucial factors in the determination of dividend payouts, whereas cash flow is negatively associated with dividend payouts. The results support the Lintner model (1956) and also follow the transaction cost hypothesis.

Keywords: Dividend payout; KSE; Earning per share; Transaction cost hypothesis (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:32:y:2013:i:c:p:88-90

DOI: 10.1016/j.econmod.2013.01.041

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