Impact of ownership structure on dividend payout in Pakistani non-financial sector
The purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that manager...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2016-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23311975.2016.1272815 |
| _version_ | 1818852820771667968 |
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| author | Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq |
| author_facet | Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq |
| author_sort | Muzammal Ilyas Sindhu |
| collection | DOAJ |
| description | The purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that managerial ownership (MO) has shown significant and negative impact on DIV which indicates that as MO rise, they will prefer to retain instead of distribution. Institutional ownership is showing significant and positive behavior with DIV ratio which also showing favorable arguments for dividend distribution. Change in earnings and operating cash flows as control variables are not making variation in DIV. Further, firms having favorable firm’s value and higher firm’s size lead to distribute more dividends with good faith and reputation. Leverage and DIV ratio relationship are an indication of cash flow theory, all earnings must be distributed among shareholders while positive and favorable NPV projects must be availed through debt financing. This study provides supports to shareholders in adjusting their investment strategies because it provides information regarding dividend policies. |
| first_indexed | 2024-12-19T07:27:00Z |
| format | Article |
| id | doaj.art-a67f2faf58004e26ad8ecaa8754157b4 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-12-19T07:27:00Z |
| publishDate | 2016-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-a67f2faf58004e26ad8ecaa8754157b42022-12-21T20:30:48ZengTaylor & Francis GroupCogent Business & Management2331-19752016-12-013110.1080/23311975.2016.12728151272815Impact of ownership structure on dividend payout in Pakistani non-financial sectorMuzammal Ilyas Sindhu0Shujahat Haider Hashmi1Ehtasham Ul Haq2Bahria UniversityCapital University of Science and TechnologyQuaid-e-Azam UniversityThe purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that managerial ownership (MO) has shown significant and negative impact on DIV which indicates that as MO rise, they will prefer to retain instead of distribution. Institutional ownership is showing significant and positive behavior with DIV ratio which also showing favorable arguments for dividend distribution. Change in earnings and operating cash flows as control variables are not making variation in DIV. Further, firms having favorable firm’s value and higher firm’s size lead to distribute more dividends with good faith and reputation. Leverage and DIV ratio relationship are an indication of cash flow theory, all earnings must be distributed among shareholders while positive and favorable NPV projects must be availed through debt financing. This study provides supports to shareholders in adjusting their investment strategies because it provides information regarding dividend policies.http://dx.doi.org/10.1080/23311975.2016.1272815managerial ownershipinstitutional ownershipleveragefirm sizepanel data analysis |
| spellingShingle | Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq Impact of ownership structure on dividend payout in Pakistani non-financial sector Cogent Business & Management managerial ownership institutional ownership leverage firm size panel data analysis |
| title | Impact of ownership structure on dividend payout in Pakistani non-financial sector |
| title_full | Impact of ownership structure on dividend payout in Pakistani non-financial sector |
| title_fullStr | Impact of ownership structure on dividend payout in Pakistani non-financial sector |
| title_full_unstemmed | Impact of ownership structure on dividend payout in Pakistani non-financial sector |
| title_short | Impact of ownership structure on dividend payout in Pakistani non-financial sector |
| title_sort | impact of ownership structure on dividend payout in pakistani non financial sector |
| topic | managerial ownership institutional ownership leverage firm size panel data analysis |
| url | http://dx.doi.org/10.1080/23311975.2016.1272815 |
| work_keys_str_mv | AT muzammalilyassindhu impactofownershipstructureondividendpayoutinpakistaninonfinancialsector AT shujahathaiderhashmi impactofownershipstructureondividendpayoutinpakistaninonfinancialsector AT ehtashamulhaq impactofownershipstructureondividendpayoutinpakistaninonfinancialsector |