Behavior of Company Performance in Response to Dividend Policy: An Analysis of Textile Sector Listed in Pakistan Stock Exchange

The current study explains the relationship of dividend payout policy on the business performance of companies that exist in textile of Pakistan. 100 companies are selected from textile sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company, leverage (debt to equity ratio) and corporate governance index. Panel data is collected from 2012-2017 (six years) and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, Fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results of the study show that in textile companies, a negative relationship occurs between dividend payout policy and their profitability. Furthermore, size of the firm according to the pecking order theory and leverage as per the agency cost theory came out to have a significant controlling effect on this negative relationship.

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Accelerating Company Performance through Dividend Payout Policy: A Trend Analysis of Automobile Sector Listed in Pakistan Stock Exchange

Journal of Accounting and Finance in Emerging Economies ◽

10.26710/jafee.v7i1.1572 ◽

2021 ◽

Vol 7 (1) ◽

pp. 117-141

Author(s):

Nisar Ahmad ◽

Mohsin Nazir ◽

Naseer Abbas

Keyword(s):

Business Performance ◽

Stock Exchange ◽

Random Effect ◽

Payout Policy ◽

Company Performance ◽

Dividend Payout ◽

Size Growth ◽

Equity Ratio ◽

Relationship Of ◽

The Relationship

The study explains the relationship of dividend payout policy on the business performance of companies that exist in automobile sector of Pakistan. 100 companies are selected from automobile sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company leverage debt to equity ratio and corporate governance index. Panel data is collected from 2012-2017 six years and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results showed that the automobile companies showed positive relationship between their dividend payout policy and profitability and it was concluded that both dependent and independent variables are positively related in this sector and size, growth and leverage are the controlling predictors of the relationship.

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A CRITICAL REVIEW OF COMPANY PERFORMANCE IN RESPONSE TO DIVIDEND PAYOUT POLICY IN THE PERSPECTIVE OF PAKISTAN

Journal of Arts & Social Sciences ◽

10.46662/jass.v8i2.139 ◽

2021 ◽

Vol 8 (2) ◽

pp. 16-39

Author(s):

Dr. Nisar Ahmad Bazmi

Keyword(s):

Corporate Governance ◽

Business Performance ◽

Random Effect ◽

Payout Policy ◽

Company Performance ◽

Dividend Payout ◽

Governance Index ◽

Size Growth ◽

Equity Ratio ◽

Relationship Of

The current study explains the relationship of dividend payout policy on the business performance of companies that exist in sugar of Pakistan. 100 companies are selected from sugar sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company, leverage (debt to equity ratio) and corporate governance index. Panel data is collected from 2012-2017 (six years) and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, Fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results of the study show sugar companies showed no sign of a relationship between their dividend payout policy and profitability and so there is no controlling factor effective due to the absence of any relationship. Thus, the hypotheses were rejected in case of these two industries. Key Words: Company Performance, Dividend Policy, Tobin’s Q, Size, Growth, Leverage, Corporate Governance Index, Dividend Payout

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Bidirectional Relationship between Firm Performance and Dividend Payout Policy: A Study of Chemical Sector in Emerging Economies in Pakistan

Journal of Accounting and Finance in Emerging Economies ◽

10.26710/jafee.v7i3.1635 ◽

2021 ◽

Vol 7 (3) ◽

Author(s):

Nisar Ahmad Bazmi ◽

Sh.Khurram Abid ◽

Samia Maqbool

Keyword(s):

Business Performance ◽

Random Effect ◽

Payout Policy ◽

Dividend Payout ◽

Bidirectional Relationship ◽

Equity Ratio ◽

Company Growth ◽

Relationship Of ◽

The Relationship ◽

Random Effect Models

The study explains the relationship of dividend payout policy on the business performance of companies that exist in Chemical of Pakistan. 100 companies are selected from Chemical sector. Relationship of dividend payout policy and business performance was controlled with four variables based on relevant theories. These variables include size of company, growth of company, leverage (debt to equity ratio) and corporate governance index. Panel data is collected from 2012-2017 (six years) and then analyzed with unit root, descriptive statistics, correlation analysis, OLS regression, Lagrange multiplier, Huasman test, Fixed effect and Random effect models. Following key findings for each research objective were obtained by applying the adopted research method on the data through the adopted method of analyses: The results showed that the no sign of a relationship between their dividend payout policy and profitability and so there is no controlling factor effective due to the absence of any relationship. Thus, the hypotheses were rejected.

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Determinants of dividend payout policy: An empirical study of banking sector of Pakistan

Applied Studies in Agribusiness and Commerce ◽

10.19041/apstract/2016/4-5/13 ◽

2016 ◽

Vol 10 (4-5) ◽

pp. 101-106 ◽

Cited By ~ 1

Author(s):

Ishtiaq Ahmad ◽

Muhammad Fahid Muqaddas

Keyword(s):

Dividend Policy ◽

Banking Sector ◽

Stock Exchange ◽

Payout Policy ◽

Panel Regression ◽

Financial Efficiency ◽

Safety Risk ◽

Dividend Payout ◽

Jel Code ◽

Relationship Of

One good way to communicate financial performance of a bank to its shareholders is the payment of dividend. The present study is attempted to explore the influence of financial efficiency, safety, risk and profitability on dividend policy using panel data of 10 commercial banks listed at Pakistan Stock Exchange (PSX) for a period of 9 years between 2006 to 2014. The panel regression technique is used to analyze the data. The analysis shows a positive relationship of dividend payout ratio with safety and profitability in banking sector of Pakistan. The study identifies a negative association of dividend payout measure with financial efficiency and risk. The results show the statistically significant association of safety, risk and profitability with dividend payout ratio. Based on these findings it is concluded that safety, risk and profitability measures are relatively strong measures for defining dividend policy. The results are strongly indicating that safer the banks, the greater payout ratio the bank has. Moreover; banks with higher profitability and lower non-performing loans (NPLs) are believed to pay more dividends. JEL code: G21, G23, G35

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ANALISIS PENGARUH AGENCY COST TERHADAP DIVIDEND PAYOUT RATIO (Pada Perusahaan Manufaktur di Bursa Efek Indonesia Tahun 2010-2011)

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.6498 ◽

2013 ◽

Author(s):

Raudhatul Hidayah

Keyword(s):

Firm Size ◽

Sampling Method ◽

Dividend Policy ◽

Stock Exchange ◽

Institutional Ownership ◽

Agency Cost ◽

Regression Method ◽

Linear Regression Method ◽

Dividend Payout ◽

Multiple Linear Regression Method

The main purpose of the research was to know partially the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010–2011 period. The other purpose is to know simultaneously the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010–2011 period. The population of this research was all the firms that listed at Indonesia Stock Exchange of 2010-2011 period namely, 136 in number. The sample, 27 firms, was taken by the use of purposive sampling method. The technique of data collection used was documentation. The data analysis made use of multiple linear regression method. The results showed that partially institutional ownership had a positive and significant effect to dividend policy. Collateralizable assets, debt to total assets and firm size partially was not significant to dividend policy. Simultaneously institutional ownership, collateralizable assets, debt to total assets and firm size had a positive and significant effect to dividend payout ratio.

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ANALISIS PENGARUH AGENCY COST TERHADAP DIVIDEND PAYOUT RATIO (Pada Perusahaan Manufaktur di Bursa Efek Indonesia Tabun 2010-2011)

Jurnal Kajian Akuntansi dan Auditing ◽

10.37301/jkaa.v0i0.5380 ◽

2013 ◽

Author(s):

Raudhatul Hidayah

Keyword(s):

Firm Size ◽

Sampling Method ◽

Dividend Policy ◽

Stock Exchange ◽

Institutional Ownership ◽

Agency Cost ◽

Regression Method ◽

Linear Regression Method ◽

Dividend Payout ◽

Multiple Linear Regression Method

The main purpose of the research was to know partially the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010-2011 period. The other purpose is to know simultaneously the influence of institutional ownership, collateralizable assets, debt to total assets and firm size on dividend payout ratio in firms that listed at Indonesia Stock Exchange of 2010-2011 period. The population of this research was all the firms that listed at Indonesia Stock Exchange of 2010-2011 period namely, 136 in number. The sample, 27 firms, was taken by the use of purposive sampling method. The technique of data collection used was documentation. The data analysis made use of multiple linear regression method. The results showed that partially institutional ownership had a positive and significant effect to dividend policy. Collateralizable assets, debt to total assets and firm size partially was not significant to dividend policy. Simultaneously institutional ownership, collateralizable assets, debt to total assets and firm size had a positive and significant effect to dividend payout ratio.

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IMPACT OF DIVIDEND PAYOUT ON FIRM’S PERFORMANCE UNDER LOW GROWTH OPPORTUNITIES

Humanities & Social Sciences Reviews ◽

10.18510/hssr.2021.93114 ◽

2021 ◽

Vol 9 (3) ◽

pp. 1156-1165

Author(s):

Taymoor Ali ◽

Muhammad Kashif Khurshid ◽

Adnan Ali Chaudhary

Keyword(s):

Stock Exchange ◽

Manufacturing Sector ◽

Secondary Data ◽

Financial Statements ◽

Manufacturing Firms ◽

Growth Opportunities ◽

Dividend Payout ◽

Relationship Of ◽

The Relationship

Purpose of the study: The objective of the study was to investigate the relationship of the dividend payout on a firm's performance under low growth opportunities from the manufacturing sector of Pakistan. Methodology: A sample of 251 firms out of 378 manufacturing firms listed at the Pakistan Stock Exchange (PSX), have been carefully chosen for the era of ten years from 2006 to 2015. The secondary data was obtained from the firm’s web financials and analysis of financial statements, published by the statistics department of the State Bank of Pakistan. For the persistence of investigation panel data (fixed effect) analyses were employed in this study. Main Findings: The fallouts of the analysis revealed that the dividend payout ratio has an insignificant relationship with the firm's performance in the low growth perspectives of the study. Applications of this study: The findings of the study are helpful for the financial managers of the firms facing low growth opportunities. Furthermore, the investors in capital markets can use the findings of this while investing. The originality of this study: The study focussed on the role of low growth opportunities while studying the nexus of dividend pay-out and the firm’s financial performance which inherits the novelty and originality of the study.

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PENGARUH LEVERAGE TERHADAP PROFITABILITAS PADA INDUSTRI MAKANAN DAN MINUMAN YANG TERDAFTAR DI BURSA EFEK INDONESIA

Jurnal Manajemen dan Pemasaran Jasa ◽

10.25105/jmpj.v2i1.542 ◽

2009 ◽

Vol 2 (1) ◽

pp. 69

Author(s):

Henny Setyo Lestari ◽

Rahmawati Rahmawati

Keyword(s):

Performance Management ◽

Stock Exchange ◽

Negative Relationship ◽

Operating Costs ◽

Earning Capacity ◽

Food And Beverage ◽

Equity Ratio ◽

Operating Leverage ◽

Relationship Of ◽

The Relationship

This study aims to analyze and determined the relationship of leverage on corporate profitability.The study wanted to analyze the relationship between financial leverage, operating leverage, combined leverage, and debt equity ratio of earning per share. The aim is to explain how the earning capacity gain is influenced by the performance management fixed operating costs and fixed financial costs. In addition this study also explains the relationship between Debt Equity Ratio and Earning Per Share. In this study, selected on food and beverage manufacturing subindustry listed on the Indonesia Stock Exchange during a periode of 11 years from 1999 — 2009. Using Kruskal Wallis testing, spearman correlation analysis and the classical assumption of normality. The result showed that the data DFL, DOL, and DCL didn't differ significantly in manufacturing subindustry. fry the DER and EPS data show that differ significantly in manufacturing subindustry of food and beverages. In addition these studies show that the DFL and DCL have a positive relationship to the EPS, while the DOL and the DER ha.s'a negative relationship to the EPS.Keywords : DCL, DER, DFL, DOL, Earning Per Share, Leverage, and Profitability

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INTERNAL FINANCIAL CONSTRAINTS, EXTERNAL FINANCIAL CONSTRAINTS AND INVESTMENT CHOICE: EVIDENCE FROM PAKISTANI FIRMS

Australian Journal of Business and Management Research ◽

10.52283/nswrca.ajbmr.20110108a02 ◽

2012 ◽

Vol 01 (08) ◽

pp. 18-22

Author(s):

Muhammad AZAM ◽

Syed Anum SHAH

Keyword(s):

Financial Constraints ◽

Oil And Gas ◽

Stock Exchange ◽

Negative Relationship ◽

Dividend Payout ◽

Listed Firms ◽

Investment Choice ◽

Time Period ◽

Fixed Line ◽

The Impact

The purpose of this study is to analyze the impact of internal and external financial constraints on investment choice. The data have been taken from 9 major sectors (52 listed firms in the Karachi Stock Exchange) namely; Pharmaceutical & Bio Technology, Textile, Sugar, Tobacco, Chemicals, Oil and Gas, Fixed line Telecommunication, Industrial metal and Mining, and Cement sectors for the time period 2004 to 2010 on annual basis. Multiple regression analysis has been done to examine the relationship among firm’s size, dividend payout ratio, firm’s age, and investment. The empirical findings show that there is positive relationship between the firms’ size and investment while a negative relationship exists between firms’ age and investment. It also reports that there is negative relationship between dividend payout ratio and the investment. This shows that if a firm grows old or high dividend payout ratio then it will tend to spend less for expansion as compared to the young firms.

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Exploring Linkages Between Corporate Governance and Business Performance: Does Good Corporate Governance Lead to Enhanced Business Value?

South Asian Survey ◽

10.1177/0971523120907189 ◽

2020 ◽

Vol 27 (1) ◽

pp. 37-61

Author(s):

Tirthankar Nag ◽

Chanchal Chatterjee

Keyword(s):

Corporate Governance ◽

Firm Performance ◽

Business Performance ◽

Stock Exchange ◽

Random Effect ◽

Corporate Boards ◽

Market Returns ◽

Good Corporate Governance ◽

Governance Practices ◽

The Relationship

This study explores the influence of corporate governance practices in corporate boards on firm performance and draws insights on the relative importance for companies for fostering the development of governance mechanisms in business. The study examines 50 firms belonging to the benchmark index of the National Stock Exchange of India (NIFTY 50) and tracks them for over a five-year period. The study uses fixed and random effect econometric models to explore the relationship between corporate governance variables, and firm performance using both accounting returns (EVA, ROA and ROE) and market returns (MVA). The study finds that corporate governance variables significantly improve firm performance or value creation. Especially, multiple directorships, involvement of foreign institutional investors and increase in promoter holdings may significantly affect returns of the firm. The study suggests that it may be useful to foster better corporate governance practices and monitor linkages with firm performance as the effect is influenced by other control variables also.

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