DETERMINANTS OF DIVIDEND POLICY: CASE OF THE PHARMACEUTICAL SECTOR OF PAKISTAN
The dividend payout policy is one of the most debated topics within corporate finance. Many research studies have been undertaken to examine the impact of various variables on dividend policy. The objective of the study is to analyze the impact of firm-specific factors on dividend policy in the pharmaceutical sector of Pakistan for the period of 2009 to 2014. The dividend Payout Ratio is considered a dependent variable and the size of the firm, Sales Growth, Profitability, and Leverage are independent variables. The annual data for all the relevant variables are collected from the State Bank of Pakistan. The overall strength of the model is 45% and the model is the best fit at a 1% level of significance. The results of the study confirm that there is a significant positive impact of the size of the firm and sales growth on the decision of dividend payout of companies. Whereas ROA and leverage showed a negative impact on the Dividend payout ratio.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Submission of work requires that the piece to be reviewed has not been previously published. Upon acceptance, the Author assigns to the Bulletin of Business and Economics (BBE) the right to publish and distribute the manuscript in part or in its entirety. The Author's name will always be included with the publication of the manuscript.
The Author has the following nonexclusive rights: (1) to use the manuscript in the Author's teaching activities; (2) to publish the manuscript, or permit its publication, as part of any book the Author may write; (3) to include the manuscript in the Author's own personal or departmental (but not institutional) database or on-line site; and (4) to license reprints of the manuscript to third persons for educational photocopying. The Author also agrees to properly credit the Bulletin of Business and Economics (BBE) as the original place of publication.
The Author hereby grants the Bulletin of Business and Economics (BBE) full and exclusive rights to the manuscript, all revisions, and the full copyright. Bulletin of Business and Economics (BBE) rights include but are not limited to the following:
(1) to reproduce, publish, sell, and distribute copies of the manuscript, selections of the manuscript, and translations and other derivative works based upon the manuscript, in print, audio-visual, electronic, or by any and all media now or hereafter known or devised; (2) to license reprints of the manuscript to third persons for educational photocopying; (3) to license others to create abstracts of the manuscript and to index the manuscript; (4) to license secondary publishers to reproduce the manuscript in print, microform, or any computer-readable form, including electronic on-line databases; and (5) to license the manuscript for document delivery. These exclusive rights run the full term of the copyright, and all renewals and extensions thereof.