The long-term return behaviour of dividend-changing firms has been investigated in the study and it is estimated that 23 percent only incremental profits are transformed into dividend. The remaining profits are utilized for the additional investment. It is also concluded that concentration of ownership is also an important factor of the dividend payments. The results support the hypothesis that companies start to pay dividends after a certain level of growth. At the earlier stage companies concentrate on retained earnings. The Ordinary Least Square (OLS) technique has been applied in the study and the model has been estimated through the pooled data of annual audited accounts of 180 listed companies of the Karachi Stock Exchange.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
619.
Length: Date of creation: 2002 Date of revision:
2003 Publication status: Published in Pakistan Economic and Social Review 1.XLIII(2005): pp. 115-128 Handle: RePEc:pra:mprapa:619
Find related papers by JEL classification: G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Myers, Stewart C., 1984.
"Capital structure puzzle,"
Working papers
1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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