Dividend behaviour has extensively been reviewed by many
researchers from time to time across different countries. Empirical
evidences observed in most of the studies reveal equivocal results about
dividend theories [Bhattacharyya (2007)]. Since, in absence of any
unanimous findings, need for future research has not been restricted,
theoretically. In developing countries like Pakistan, where limited
research is available on corporate dividend policy, need for future
research is more looked for. Most of the available research papers,
address only firm specific determinants of dividend policy. Do
macroeconomic variables influence corporate financing decisions? The
need to address this question is the prime motive of this research
paper. Major objective of this paper is to observe dividend behaviour of
listed firms in Pakistan under monetary policy restrictions and this is
the first attempt of its kind in Pakistan to the best of my Knowledge.
This study is very relevant in present scenario since State Bank of
Pakistan (SBP) has been persistently pursuing restricted monetary policy
since 2005 to control inflation.
Monetary Policy Restriction and Dividend Behaviour of Pakistani
Firms: An Empirical Analysis
