The Impact of Dividend Policy on Firms Financial Performance; A Case of Pakistan Non-Financial Firms
Author: Zohaib Nawab

This study empirically examines the impact of dividend policy and firm level control variables (i.e. firm size, firm growth, firm leverage) on the firm’s financial performance among the non-financial firms of Pakistan that are listed in Pakistan stock exchange. Panel data extract from audited annual financial reports of 100 firms sample based on market capitalization from 2006 to 2015 and divided into 13 different sectors. The panel data were analyzed within the frame work of fixed and random effect model after carry out Hausman specification test from overall market and different sectors. The descriptive summary shows that the average dividend pay-out of firm is 35.00% while the mean performance measured by return on assets is 11.67% during the study period. The results of regression show that dividend pay-out positive significant related to overall market firm’s performance but vary to different sectors in Pakistan. It is suggested that different sector set their dividend policy upon their financial performance, so for the sector that dividend policy has significant relationship need to pay health dividend to give positive massage to market while those sectors which has insignificant relation need to reinvest their retain earning for the purpose of capital gain. Supervisor:- Dr. Muhammad Jamil

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Keywords : Dividend Policy, Financial Performance, Non Financial Firms, Pakistan Stock Exchange
Supervisor: Muhammad Jamil

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