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Determinants of Dividend with Industry wise Effect: Evidence from KSE 100 Index

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  • Hussain, Adnan
  • Mubin, Muhammad
  • Lal, Irfan Lal

Abstract

This research have identified the industry-wise effect of dividend policy among non-financial listed companies of KSE – 100 Index. For this purpose data from 2006 to 2011 for 53 companies of different industries i.e. Fuel and Energy Sector, Chemicals Sector, Cement Sector, Engineering Sector, Textiles Sector and Transport and Communication Sector have been taken. Multiple Regression Analysis has been used to identify the prominent determinant of Dividend and Industry effect was captured through incorporating six dummy variables for said industries. Results highlighted that apart from profitability most powerful determinant of dividend there are other factors of life cycle, tangibility of assets are prominent whereas capital structure, size of firm and cash flows per share is not significant determinant of dividend. Apart from these variable, Industry-wise effect shows that all the above significant determinants remains significant within industry except textile sector.

Suggested Citation

  • Hussain, Adnan & Mubin, Muhammad & Lal, Irfan Lal, 2014. "Determinants of Dividend with Industry wise Effect: Evidence from KSE 100 Index," MPRA Paper 70013, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70013
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    References listed on IDEAS

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    1. Husam‐Aldin Nizar Al‐Malkawi, 2007. "Determinants of Corporate Dividend Policy in Jordan: An Application of the Tobit Model," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 23(2), pages 44-70, December.
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    3. Varouj Aivazian & Laurence Booth & Sean Cleary, 2003. "Do Emerging Market Firms Follow Different Dividend Policies From U.S. Firms?," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 26(3), pages 371-387, September.
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    More about this item

    Keywords

    Stock Market; Industry; Dividend;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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