IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v4y2012i6id2408.html

Corporate Payout Policy and Market Capitalization: Evidence from Pakistan

Author

Listed:
  • Mian Sajid Nazir
  • Allah Rakha
  • Muhammad Musarrat Nawaz

Abstract

Present study examines the relationship between corporate payout policy and market capitalization by studying payout ratio and dividend yield as measures of payout policy and controlling other variables of size, growth, EPS, Leverage, GDP growth, and Interest rates. Different statistical techniques of correlation, regression, fixed effect and random effect are applied on pooled and panel data to find out the relationship between corporate payout policy and market capitalization. The results show that measures of corporate payout policy, dividend yield and payout ratio has strong negative correlation with market capitalization. Control variables of size and leverage have positive significant correlation with market capitalization while higher earnings per share are leading it negatively and these relationships are statistically significant at various levels of significance. Overall results suggested that the corporate payout policy has significant impact on market capitalization in Pakistan and this notion is consistent with the earlier studies.

Suggested Citation

  • Mian Sajid Nazir & Allah Rakha & Muhammad Musarrat Nawaz, 2012. "Corporate Payout Policy and Market Capitalization: Evidence from Pakistan," Journal of Economics and Behavioral Studies, AMH International, vol. 4(6), pages 331-343, June.
    • Handle: RePEc:rnd:arjebs:v:4:y:2012:i:6:id:2408
    DOI: 10.22610/jebs.v4i6.333
    as

    Download full text from publisher

    File URL: https://amhinternational.com/jebs/article/view/2408-corporate-payout-policy-and-market-capitalization-evidence-from-pakistan
    File Function: Abstract page
    Download Restriction: no
    File URL: https://amhinternational.com/jebs/article/download/2408-corporate-payout-policy-and-market-capitalization-evidence-from-pakistan/0a405ae9-3945-49ae-a6cc-74c5e0a2cf8d
    File Function: Full text
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v4i6.333?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:rnd:arjebs:v:4:y:2012:i:6:id:2408. 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: AMH International (email available below). General contact details of provider: https://amhinternational.com/jebs .

    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.