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

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

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

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.

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

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.

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

2021 ◽  
Vol 9 (12) ◽  
pp. 1-24
Author(s):  
Nisar Ahmad ◽  
Ayesha Ahmed
Keyword(s):  
Business Performance ◽  
Stock Exchange ◽  
Random Effect ◽  
Negative Relationship ◽  
Payout Policy ◽  
Order Theory ◽  
Agency Cost ◽  
Dividend Payout ◽  
Relationship Of ◽  
Textile Sector

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.

scholarly journals Effect of Corporate Governance Index on Dividend Policy: An Investigation of Textile Industry of Pakistan

2017 ◽  
Vol 5 (2) ◽  
Author(s):  
Safdar Husain Tahir ◽  
Sara Sohail ◽  
Saba Babar ◽  
Irtaza Oayyum
Keyword(s):  
Corporate Governance ◽  
Textile Industry ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Payout Policy ◽  
Profit Margin ◽  
Dividend Payout ◽  
Governance Index ◽  
The Impact

This study empirically observes the impact of corporate governance index on dividend payout policy by using the data on thirty textile firms listed at Karachi Stock Exchange. The data cover the five-year period from 2009 to 2013. The data were gathered from financial statements of all the sample firms. Multiple regression models were used to check the impact of corporate governance on dividend policy. No effect of corporate governance index on firm dividend policy was found, and the largest shareholders also had no impact on dividend payout policy. A significant positive relationship was found between payout policy and stock value. Gross profit margin and operating profit margin had significant positive impact on the firm’s dividend payout policy. There is a significant correlation between the firm’s performance and payout policy.

scholarly journals Impact of corporate governance index on firm performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 4 (3) ◽  
pp. 163-174 ◽  
Author(s):  
Faisal Javaid
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Random Effect ◽  
Annual Reports ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 textile sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

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

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.

scholarly journals Impact of Corporate Governance index on Firm Performance: evidence from Pakistani manufacturing sector

2015 ◽  
Vol 5 (2) ◽  
pp. 1 ◽  
Author(s):  
Faisal Javaid ◽  
Abdul Saboor
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Capital Investment ◽  
Manufacturing Sector ◽  
Random Effect ◽  
Governance Mechanism ◽  
Inconsistent Result ◽  
Governance Index ◽  
Corporate Governance Mechanism ◽  
The Relationship

Corporate governance is considered to have significant impact on the growth and development perspective of an economy. Sound corporate governance practices leads the economy towards the achievement of higher performance, provide sources for capital investment by increasing the creditability of shareholders. The purpose of this study is to empirically investigate the relationship of corporate governance and firm performance in terms of accounting as well as market performance i.e.to be measured by Return on asset, Return on equity and Tobin’s Q. The theoretical base to conduct the study is the demand of separation of ownership and control characterize as agency theory. The previous studies have yielded inconsistent result. To achieve the purpose 58 manufacturing sector companies were selected listed in the Karachi stock exchange and data was taken from annual reports of the companies for the period of 2009 to 2013. Descriptive statistics, correlation analysis and regression estimation using pooled, fixed effect, random effect and Hausman specification test were carried out after developing a composite index based on 21 proxies. The result entails that corporate governance index (CGI) and firm performance has positive and significant association but the relationship for each specific index is dependent upon the measure of firm performance. The result also shows that companies having strong corporate governance mechanism has greater chances to acquire finance. The implication of study demands that the reform effort should be directed towards the improvement in internal corporate governance mechanism and regulatory framework for the governance system.

scholarly journals Pengaruh Metode Economic Value Added (EVA), Return On Asset (ROA), Return On Equity (ROE), dan Debt To Equity Ratio (DER) Terhadap Return Saham

2020 ◽  
Vol 4 (5) ◽  
pp. 230
Author(s):  
Monica Faulina Fernandus ◽  
Indra Widjaja
Keyword(s):  
Random Effect ◽  
Economic Value ◽  
Value Added ◽  
Company Performance ◽  
Return On Equity ◽  
Significant Performance ◽  
Equity Ratio ◽  
The Cost ◽  
Research Period ◽  
Effect Method

Performance measurement can be used to measure company's success in a certain period of time and can be used as input for improvement of the company in the future. In measuring company performance, investors usually see financial performance reflected in various ratios. Managerial work measurements rarely use value added calculation approach to the cost of invested capital. Because of the limitations and weaknesses of the ratio, EVA method emerged as a measure of company performance.This study aims to determine whether LQ45 companies in Indonesia have succeeded in adding value, so their performance is positive and which is the most significant performance evaluation methods: EVA, ROA, ROE, or DER. The research period is within 2016-2018 using Eviews 9.The results showed that although the companies are listed in the LQ45 category, the use of capital structure policies are not optimal and random effect method states DER as the most significant method for measuring company performance.

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