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Effect Of Corporate Governance Index On Dividend Policy: An Investigation Of Textile Industry Of Pakistan

Author

Listed:
  • Safdar Husain Tahir

    (Assistant Professor, Banking and Finance Government College University Faisalabad, Pakistan)

  • Sara Sohail

    (MS-Scholar Department of Banking & Finance, Government College University Faisalabad, Pakistan)

  • Irtaza Qayyam

    (MS-Scholar Department of Banking & Finance, Government College University Faisalabad, Pakistan)

  • Komal Mumtaz

    (MS-Scholar Department of Banking & Finance, Government College University Faisalabad, Pakistan)

Abstract

This study observed empirically the impact of corporate governance index on dividend payout policy by using the data of seventeen textile firms listed in Karachi Stock Exchange. The data covered the five years period from 2009 to 2013. The data were gathered from financial statements of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. No effect of corporate governance index on firm dividend policy was found, and the largest shareholders also had no impact on dividend pay-out policy. The association between payout policy and stock value was found to be significant positive. Gross profit margin and operating profit margin had significant positive impact on firm’s dividend payout policy. There is a significant correlation between firm performance and payout policy

Suggested Citation

  • Safdar Husain Tahir & Sara Sohail & Irtaza Qayyam & Komal Mumtaz, 2016. "Effect Of Corporate Governance Index On Dividend Policy: An Investigation Of Textile Industry Of Pakistan," Journal of Economic and Social Development, Clinical Journals Press, vol. 3(01), pages 01-08.
  • Handle: RePEc:ris:joeasd:0155
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    References listed on IDEAS

    as
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    4. Larry H. P. Lang & Mara Faccio & Leslie Young, 2001. "Dividends and Expropriation," American Economic Review, American Economic Association, vol. 91(1), pages 54-78, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Governance index; Dividend Policy; Textile Industry; Largest Shareholders; Multiple Regres;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

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