Journal of Finance and Investment Analysis

Determinants and Behavior of Dividend Policy in Pakistani Listed Companies

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• Abstract

  The rationale of the study was to identify the factors which effect dividend payout policy of the firm and whether that policy is stable depending upon last year’s dividend and current earnings or not. This study was conducted on Karachi Stock Exchange listed companies and found that leverage and tangibility were significant however other variables have consistent relationship with dividend payout policy as found in literature. It was also found that firms do not follow stable dividend policy however there was strong significant relationship between dividend payout with last year’s dividend.

  JEL classification numbers: G 30, G 32, G 35.
  Keywords: dividend payout policy, Karachi Stock exchange, leverage, tangibility.