IDEAS home Printed from https://ideas.repec.org/a/aib/ibtjbs/v13y2017i1p12-24.html
   My bibliography  Save this article

Determinants Of Dividend Payout Ratio: A Study Of Kse Manufacturing Firms In Pakistan

Author

Listed:
  • Rehab khan

    (M.phil in Business Economics University of engineering and technology, Lahore.)

  • Jamshad Khurshid Meer

    (Senior Manager for Portfolio Management & Investments, Standard Chartered Bank Ltd, Karachi)

  • Rab Nawaz Lodhi

    (Institute of Business and Management, University of Engineering and Technology Lahore, Pakistan)

  • Faisal Aftab

    (Director ORIC Bahria University Islamabad, Pakistan)

Abstract

Purpose Motive and cause of this study is pursuing to examine the determinants of dividend payout ratios of KSE listed companies in Pakistan.Design This study used the data of ten sectors of cement industry and these companies are listed in Karachi stock exchange, and data is drives by 20032012, enlarge the current research on dividend payout policy.Panel regression model used to estimate the results.Corporate profitability has always been considered as a leading independent variable of dividend payout ratio.Findings There are multitudinal factors other than corporate profitability that influence dividend decisions of the firm like taxes, cash flow and debt to equity, sales growth.This research analyzes that profitability, tax, and cash flow have a significant relation with dividend payout ratio.And debt to equity and sales growth has insignificant relationship with dividend payout ratio.Research Limitations This research failed to collect the data of different sectors listed on KSE except Cement industry.And collect the data of only one sector cement.There are other determinants exist that have a huge effect on payout ratio, than these which are included in the research.

Suggested Citation

  • Rehab khan & Jamshad Khurshid Meer & Rab Nawaz Lodhi & Faisal Aftab, 2017. "Determinants Of Dividend Payout Ratio: A Study Of Kse Manufacturing Firms In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 12-24.
    • Handle: RePEc:aib:ibtjbs:v:13:y:2017:i:1:p:12-24
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2017.131.2
    as

    Download full text from publisher

    File URL: http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/13.1/2.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.46745/ilma.ibtjbs.2017.131.2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Anthony Flint & Andrew Tan & Gary Tian, 2010. "Predicting Future Earnings Growth: A Test Of The Dividend Payout Ratio In The Australian Market," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 4(2), pages 43-58.
    2. Kashif Imran, 2011. "Determinants of Dividend Payout Policy: A Case of Pakistan Engineering Sector," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(41), pages 47-60, September.
    3. Basil Al‐Najjar, 2009. "Dividend behaviour and smoothing new evidence from Jordanian panel data," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 26(3), pages 182-197, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Farouq Altahtamouni & Reem Matahen & Amna Qazaq, 2020. "The Mediating Role of the Capital Structure, Growth Rate, and Dividend Policy in the Relationship Between Return on Equity and Market to Book Value," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 155-164, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rehab khan & Jamshad Khurshid Meer & Rab Nawaz Lodhi & Faisal Aftab, 2017. "Determinants Of Dividend Payout Ratio: A Study Of Kse Manufacturing Firms In Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 13-12.
    2. Geetanjali Pinto & Shailesh Rastogi, 2019. "Sectoral Analysis of Factors Influencing Dividend Policy: Case of an Emerging Financial Market," JRFM, MDPI, vol. 12(3), pages 1-18, June.
    3. Erhan Kilincarslan, 2018. "The Factors Determining the Dividend Policy of Financial Firms Listed on the Borsa Istanbul," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 32(1), pages 75-109.
    4. Yakubu, Ibrahim Nandom, 2019. "The Effect of Working Capital Management on Dividend Policy: An Empirical Analysis of Listed Firms in Ghana," MPRA Paper 95318, University Library of Munich, Germany.
    5. Imran, Kashif & Usman, Muhammad & Nishat, Muhammad, 2013. "Banks dividend policy: Evidence from Pakistan," Economic Modelling, Elsevier, vol. 32(C), pages 88-90.
    6. Adesina Olugoke Oladipupo & Peter Okoeguale Ibadin, 2013. "Does Working Capital Management Matter in Dividend Policy Decision? Empirical Evidence from Nigeria," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(4), pages 140-145, October.
    7. Basil Al-Najjar & Yacine Belghitar, 2012. "The information content of cashflows in the context of dividend smoothing," Economic Issues Journal Articles, Economic Issues, vol. 17(2), pages 57-70, September.
    8. Faruk Bostanci & Eyup Kadioglu & Guven Sayilgan, 2018. "Determinants of Dividend Payout Decisions: A Dynamic Panel Data Analysis of Turkish Stock Market," IJFS, MDPI, vol. 6(4), pages 1-16, November.
    9. Kartal Demirg ne, 2015. "Determinants of Target Dividend Payout Ratio: A Panel Autoregressive Distributed Lag Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 418-426.
    10. Adler Haymans Manurung & Nera Marinda Machdar & John Edward Harly Jacob FoEh & Jhonni Sinaga, 2024. "Dividend Policy as a Moderating of the Effect of Dividend Announcement on Stock Price in Indonesian Firms," International Journal of Economics and Financial Issues, Econjournals, vol. 14(4), pages 96-105, July.
    11. Tzu-Chun Sheng & Alvin Chang & Shu-Hui Lan & Shih-Cheng Li, 2020. "Analysis of the Dividend Policy Decision-Making Mechanism of Chinese and Taiwanese Lithium Battery Industries," Mathematics, MDPI, vol. 8(10), pages 1-16, October.
    12. A. Olayiwola, John & M. Ajide, Folorunsho, 2019. "Do Oil Price and Institutional Quality Matter for Dividend Policy in Nigeria?," Working Papers 12, Department of Economics, University of Ilorin.
    13. Mian Sajid Nazir & Muhammad Musarrat Nawaz, 2012. "Corporate Payout Policy and Market Capitalization: Evidence from Pakistan," Journal of Economics and Behavioral Studies, AMH International, vol. 4(6), pages 331-343.
    14. Rihanat Idowu Abdulkadir & Nur Adiana Hiau Abdullah & Wong Woei-Chyuan, 2015. "Dividend Policy Changes in The Pre-, Mid-, and Post-Financial Crisis: Evidence from The Nigerian Stock Market," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 11(2), pages 103-126.
    15. Ahmed Arif & Mehwish Aziz Khan & Ferheen Kayani & Syed Zulfiqar Ali Shah, 2011. "Dividend Policy and Earnings Management: An Empirical Study of Pakistani Listed Companies," Information Management and Business Review, AMH International, vol. 3(2), pages 68-77.
    16. Fernau, Erik & Hirsch, Stefan, 2019. "What drives dividend smoothing? A meta regression analysis of the Lintner model," International Review of Financial Analysis, Elsevier, vol. 61(C), pages 255-273.
    17. Fuad Suliman Al-Fasfus, 2020. "Impact of Free Cash Flows on Dividend Pay-Out in Jordanian Banks," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(5), pages 547-558, May.
    18. Rembulan Rahmadia Fitri & Muhamad Nadratuzzaman Hosen & Syafaat Muhari, 2016. "Analysis of Factors that Impact Dividend Payout Ratio on Listed Companies at Jakarta Islamic Index," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 87-97, April.
    19. Mubashir Ali Khan & Fareeha Abbasi & Muhammad Azeem Ahmad & Imran Arshad, 2020. "What Determines A Dividend Policy Of Listed Non-Financial Firms Of Pakistan," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 16(2), pages 103-121.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aib:ibtjbs:v:13:y:2017:i:1:p:12-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Syed Kashif Rafi (email available below). General contact details of provider: https://edirc.repec.org/data/fmilmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.