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Dividend Policy and Role of Corporate Governance in Manufacturing Sector of Pakistan

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  • Attiya Yasmin Javid

Abstract

This study examines the relationship between internal mechanisms and external mechanisms of corporate governance and dividend policy for 100 manufacturing firms listed on Karachi Stock Exchange over the period 2003 to 2011. The dividend stability model is used and the results indicate that firms follow a smooth dividend policy but are not considering the long term target dividend payout to fix their dividend policy. The positive relationship between dividend yield and corporate governance structures i.e. board composition, ownership structure, audit quality, shareholder rights etc. indicate that firms implementing corporate governance strategies pay higher dividends. The results suggest that firms earn and grow more they are capable of paying dividends.

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  • Attiya Yasmin Javid, 2015. "Dividend Policy and Role of Corporate Governance in Manufacturing Sector of Pakistan," Working Papers id:7602, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:7602
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    2. Haroon Hussain & Rohani Md-Rus & Hamdan Amer Ali Al-Jaifi, 2017. "Board Size and Dividend Policy: A Review," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 3(5), pages 197-201.
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    4. Hussain Haroon & Md-Rus Rohani & Al-Jaifi Hamdan Amer & Hussain Rana Yassir, 2022. "Determinants of Corporate Pay-Out Policy and the Moderating Effects of Firm's Growth: Evidence from Pakistan," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 32(3), pages 65-101, September.

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