Corporate governance and dividend policy
AbstractThe 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 619.
Date of creation: 2002
Date of revision: 2003
Publication status: Published in Pakistan Economic and Social Review 1.XLIII(2005): pp. 115-128
Dividend Policy; OLS; ; Ownership Structure; Retained Earnings;
Find related papers by JEL classification:
- G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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