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Determinants Of Dividend Payout Ratio: A Study Of Kse Manufacturing Firms In Pakistan

Author

Listed:
  • 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)

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.

Suggested Citation

  • Rehab khan & Jamshad Khurshid Meer & Rab Nawaz Lodhi & Faisal Aftab, 2017. "Determinants Of Dividend Payout Ratio: A Study Of Kse Manufacturing Firms In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 12-24.
    • Handle: RePEc:aib:ibtjbs:v:13:y:2017:i:1:p:12-24
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2017.131.2
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    References listed on IDEAS

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    1. Anthony Flint & Andrew Tan & Gary Tian, 2010. "Predicting Future Earnings Growth: A Test Of The Dividend Payout Ratio In The Australian Market," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(2), pages 43-58.
    2. Basil Al‐Najjar, 2009. "Dividend behaviour and smoothing new evidence from Jordanian panel data," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 26(3), pages 182-197, July.
    3. Kashif Imran, 2011. "Determinants of Dividend Payout Policy: A Case of Pakistan Engineering Sector," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(41), pages 47-60, September.
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    Cited by:

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