International Journal of Managment, IT and Engineering
  • Year: 2014
  • Volume: 4
  • Issue: 2

Ownership structure and cash flow as determinants of corporate dividend policy

  • Author:
  • Arslan Nasir, Muhammad Adnan Afzal, Muhammad Sajid1,, Adnan Ashraf
  • Total Page Count: 15
  • Page Number: 525 to 539

*Research Scholar, Banking & Finance, Government College University, Faisalabad, Pakistan

**Lecturer, College of Commerce, Government College University, Faisalabad, Pakistan

***Lecturer, Department of Banking and Finance, Government College University, Faisalabad, Pakistan

1Corresponding Author

JEL Classification: G32, G35

Abstract

The present study investigates the impact of firm specific characteristics on corporate dividend policy behavior in Pakistan. The five years data from 2008 to 2012 is collected from the officialwebsites of the companies listed at Karachi Stock Exchange (KSE). The results show that executive (MNG) and individual ownership (IND), cash flow sensitivity (CFS), size (SZ) and leverage have negativeand significant relationship with DPO and DIVINT.Whereas, operating cash flow (OCF) and profitability (EPS) have positive and insignificant relationship with DPO and DIVINT. This study gives awareness to the corporate authorities of Pakistan about the reason of low dividend pay practice. More precisely, this research work explains an important role designing of dividend policy in Pakistan.

Keywords

Dividend policy, Ownership Structure, Cash Flow, OLS Regression