Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan

Saghir Ahmed; Hasan Murtaza

doi:doi:10.11648/j.ijefm.20150303.17

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Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan

Saghir Ahmed, Hasan Murtaza

Published in International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 3)

Received: 28 March 2015 Accepted: 10 April 2015 Published: 27 April 2015

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Abstract

The research was conducted to highlight the determinants of dividend payout and to analyse the effect of change in dividends over the future company growth in Pakistan. Firm size, liquidity, profitability, leverage, and earnings per share were used as independent variable while dividend payout ratio was taken as dependent variable. Prolonging this relationship further, dividend payout ratio was taken as independent variable and company growth as dependent variable to examine the impact of dividend payout ratio on future company growth. Descriptive statistics and pooled least square method were used. E-views was used to process the secondary data from 2003-2011 related to 38 selected companies from four different sectors. Results show that there is a significant relationship among liquidity, earning per share, leverage, firm size and dividend payout ratio in all four selected sectors: Oil, Cement, Energy, and Sugar. It is also found that there is significant relationship between dividend payout ratio and future company growth.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 3, Issue 3)
DOI	10.11648/j.ijefm.20150303.17
Page(s)	204-212
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Dividend Payout, Pooled Least Square Regression, Pakistan

References

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APA Style

Saghir Ahmed, Hasan Murtaza. (2015). Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. International Journal of Economics, Finance and Management Sciences, 3(3), 204-212. https://doi.org/10.11648/j.ijefm.20150303.17

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ACS Style

Saghir Ahmed; Hasan Murtaza. Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. Int. J. Econ. Finance Manag. Sci. 2015, 3(3), 204-212. doi: 10.11648/j.ijefm.20150303.17

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AMA Style

Saghir Ahmed, Hasan Murtaza. Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. Int J Econ Finance Manag Sci. 2015;3(3):204-212. doi: 10.11648/j.ijefm.20150303.17

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@article{10.11648/j.ijefm.20150303.17,
  author = {Saghir Ahmed and Hasan Murtaza},
  title = {Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {3},
  pages = {204-212},
  doi = {10.11648/j.ijefm.20150303.17},
  url = {https://doi.org/10.11648/j.ijefm.20150303.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150303.17},
  abstract = {The research was conducted to highlight the determinants of dividend payout and to analyse the effect of change in dividends over the future company growth in Pakistan. Firm size, liquidity, profitability, leverage, and earnings per share were used as independent variable while dividend payout ratio was taken as dependent variable. Prolonging this relationship further, dividend payout ratio was taken as independent variable and company growth as dependent variable to examine the impact of dividend payout ratio on future company growth. Descriptive statistics and pooled least square method were used. E-views was used to process the secondary data from 2003-2011 related to 38 selected companies from four different sectors. Results show that there is a significant relationship among liquidity, earning per share, leverage, firm size and dividend payout ratio in all four selected sectors: Oil, Cement, Energy, and Sugar. It is also found that there is significant relationship between dividend payout ratio and future company growth.},
 year = {2015}
}

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TY  - JOUR
T1  - Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan
AU  - Saghir Ahmed
AU  - Hasan Murtaza
Y1  - 2015/04/27
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150303.17
DO  - 10.11648/j.ijefm.20150303.17
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 204
EP  - 212
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20150303.17
AB  - The research was conducted to highlight the determinants of dividend payout and to analyse the effect of change in dividends over the future company growth in Pakistan. Firm size, liquidity, profitability, leverage, and earnings per share were used as independent variable while dividend payout ratio was taken as dependent variable. Prolonging this relationship further, dividend payout ratio was taken as independent variable and company growth as dependent variable to examine the impact of dividend payout ratio on future company growth. Descriptive statistics and pooled least square method were used. E-views was used to process the secondary data from 2003-2011 related to 38 selected companies from four different sectors. Results show that there is a significant relationship among liquidity, earning per share, leverage, firm size and dividend payout ratio in all four selected sectors: Oil, Cement, Energy, and Sugar. It is also found that there is significant relationship between dividend payout ratio and future company growth.
VL  - 3
IS  - 3
ER  -

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Author Information

Saghir Ahmed

Department of Management Sciences, National University of Modern Languages, Islamabad, Pakistan
Hasan Murtaza

Business School, University of Lahore, Islamabad Campus, Pakistan

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APA Style

Saghir Ahmed, Hasan Murtaza. (2015). Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. International Journal of Economics, Finance and Management Sciences, 3(3), 204-212. https://doi.org/10.11648/j.ijefm.20150303.17

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ACS Style

Saghir Ahmed; Hasan Murtaza. Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. Int. J. Econ. Finance Manag. Sci. 2015, 3(3), 204-212. doi: 10.11648/j.ijefm.20150303.17

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AMA Style

Saghir Ahmed, Hasan Murtaza. Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan. Int J Econ Finance Manag Sci. 2015;3(3):204-212. doi: 10.11648/j.ijefm.20150303.17

Copy | Download

@article{10.11648/j.ijefm.20150303.17,
  author = {Saghir Ahmed and Hasan Murtaza},
  title = {Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {3},
  number = {3},
  pages = {204-212},
  doi = {10.11648/j.ijefm.20150303.17},
  url = {https://doi.org/10.11648/j.ijefm.20150303.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20150303.17},
  abstract = {The research was conducted to highlight the determinants of dividend payout and to analyse the effect of change in dividends over the future company growth in Pakistan. Firm size, liquidity, profitability, leverage, and earnings per share were used as independent variable while dividend payout ratio was taken as dependent variable. Prolonging this relationship further, dividend payout ratio was taken as independent variable and company growth as dependent variable to examine the impact of dividend payout ratio on future company growth. Descriptive statistics and pooled least square method were used. E-views was used to process the secondary data from 2003-2011 related to 38 selected companies from four different sectors. Results show that there is a significant relationship among liquidity, earning per share, leverage, firm size and dividend payout ratio in all four selected sectors: Oil, Cement, Energy, and Sugar. It is also found that there is significant relationship between dividend payout ratio and future company growth.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Critical Analysis of the Factors Affecting the Dividend Payout: Evidence from Pakistan
AU  - Saghir Ahmed
AU  - Hasan Murtaza
Y1  - 2015/04/27
PY  - 2015
N1  - https://doi.org/10.11648/j.ijefm.20150303.17
DO  - 10.11648/j.ijefm.20150303.17
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 204
EP  - 212
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20150303.17
AB  - The research was conducted to highlight the determinants of dividend payout and to analyse the effect of change in dividends over the future company growth in Pakistan. Firm size, liquidity, profitability, leverage, and earnings per share were used as independent variable while dividend payout ratio was taken as dependent variable. Prolonging this relationship further, dividend payout ratio was taken as independent variable and company growth as dependent variable to examine the impact of dividend payout ratio on future company growth. Descriptive statistics and pooled least square method were used. E-views was used to process the secondary data from 2003-2011 related to 38 selected companies from four different sectors. Results show that there is a significant relationship among liquidity, earning per share, leverage, firm size and dividend payout ratio in all four selected sectors: Oil, Cement, Energy, and Sugar. It is also found that there is significant relationship between dividend payout ratio and future company growth.
VL  - 3
IS  - 3
ER  -

Copy | Download