Excellent corporate governance will help maintain investor confidence in financial markets. Good governance mechanisms create goodwill and improves the performance of financial companies. However, if the company’s management is inadequate, the financial performance is bad, and companies lose the confidence of all stakeholders. This study aims to check the impact of corporate governance on dividend payout policy in cement sector of Pakistan for the period of sixteen years i.e. 2003 to 2018. The secondary data of research is collected from annual reports of companies. The study finds that board meetings, board size and firm size put highly positive and significant impact on dividend while board independence, ownership structure and CEO duality puts negative and insignificant impact on dividend. The audit independence, audit committee meetings, audit committee size puts weekly positive and insignificant impact on dividend. Hence, the firms that earn more can pay more dividends to shareholders while the ups and downs in Pakistani economy may result to reduction in dividend payments. Finally, it is concluded that good governance mechanisms have strong and positive impact on dividend payment for cement sector companies, listed in Pakistan Stock Exchange (PSX), in Pakistan. The result of this study may be helpful for investors, financial management consultants, financial managers and overall management of the company to understand the effect of board size, CEO duality, ownership structure, board meeting, board independence, firm size, profitability, audit variables and dividend policy on the performance of firms. Supervisor:- Dr. Nazia Bibi