IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v5y2015i4p356-377.html
   My bibliography  Save this article

Impact of ownership structure on dividend smoothing: a comparison of family and non-family firms in Pakistan

Author

Listed:
  • Ejaz Hussain
  • Attaullah Shah

Abstract

In this paper, we use unique features of Pakistan's corporate environment to test information asymmetry and agency theories in explaining dividend smoothing behaviour of firms. Based on a sample of 150 non-financial firms listed at the Karachi Stock Exchange over the period of 1999 to 2012, we find evidence that the degree of dividend smoothing in family firms is lower than the degree of dividend smoothing in non-family firms. Our findings are more in line with the implications of information asymmetry theory. Moreover, our findings suggest that firms in Pakistan follow more flexible dividend policies as compared to developed markets, despite the fact that Pakistan is in classical tax system.

Suggested Citation

  • Ejaz Hussain & Attaullah Shah, 2015. "Impact of ownership structure on dividend smoothing: a comparison of family and non-family firms in Pakistan," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 5(4), pages 356-377.
    • Handle: RePEc:ids:afasfa:v:5:y:2015:i:4:p:356-377
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=73489
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shah, Mohay Ud Din & Shah, Attaullah & Khan, Safi Ullah, 2017. "Herding behavior in the Pakistan stock exchange: Some new insights," Research in International Business and Finance, Elsevier, vol. 42(C), pages 865-873.
    2. Khan, Naimat U. & Shah Jehan, Qurat Ul Ain & Shah, Attaullah, 2017. "Impact of taxation on dividend policy: Evidence from Pakistan," Research in International Business and Finance, Elsevier, vol. 42(C), pages 365-375.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:5:y:2015:i:4:p:356-377. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.