出版社：The International Institute for Science, Technology and Education (IISTE)
摘要：We examine the determinants of dividend policy of firms listed on Karachi stock Exchange and are part of KSE-100 index. Using panel data of 100 financial and non-financial firms over the period 2007 to 2009 we have found that liquidity, leverage, earning per share, and size are positively related to dividend, whereas growth and profitability are found to be insignificant determinant of dividend policy. The results from probit model estimation reveal that earning per share, company profitability, and size increase the probability of companies to pay dividend, whereas growth opportunities decrease the probability of paying dividends. Data is compiled in two different forms, as per the requirement of the two models used in this study. On the first set of data, panel OLS Regression is used. All financial factors, as independent variables, are calculated in terms of percentage except for the sales which is in log form. Whereas dependent variable Dit is also used in percentage of dividend paid per share. Secondly, data set is constructed so as to apply probit model where we categorize firms among dividend-paying and non-dividend-paying, and all independent variables are taken as three years averages.
关键词：Karachi Stock Exchange; Dividend Irrelevance Theory; Probit Model
