Dividend Payout Ratio and Firm’s Profitability. Evidence from Pakistan

Hasan, Mudassar; Ahmad, Muhammad Ishfaq; Rafiq, Muhammad; Rehman, Ramiz Ur

doi:10.4236/tel.2015.53051

Cited by 16 publications

(22 citation statements)

References 12 publications

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“…Consequently, the result produce a basis for rejecting the first null hypothesis formulated which presumed that DPR has no significant effect on ROE of listed consumer goods companies in Nigeria. This is consistent with dividend relevant theory, Miller and Rock (1985) and Enekwe, Nweze and Agu (2009).This is line with the finding of Enkwe et al (2009), Khan (2012), Musiega et al (2013), Sarhandi et al (2015) and others that found that DPR is positively and significantly associated with ROE and contradicts the finding of Hasan et al (2015) who documented that DPR is negatively significantly related to ROE.…”

Section: Resultssupporting

confidence: 88%

“…This supported dividend relevant theory, Miller and Rock (1985) and Enekwe, Nweze and Agu (2009). It is also in-line with the findings in Khan (2012), Musiega et al (2013), Sarhandi et al (2015) and others that conclude that DPR is positively and significantly associated with ROA and contradicts the finding of Hasan et al (2015) who documented that DPR is negatively significantly related to ROA.…”

Section: Resultssupporting

confidence: 88%

“…The study covers a time span of 1996-2008. The results of logarithmic regression showed that no matter what industry is, there is a negative impact of dividend payout ratio on next year profitability of a firm (Hasan et al, 2015). Abdullah and Thafani (2014) sought to establish the relationship between dividend payout on corporate profitability in the Manufacturing Companies listed on Colombo Stock Exchange in Sri Lanka during the period of 2007 -2011.The study also employed a sub-sample in order to arrive at a profound conclusion with regard to the impact of dividend policy on corporate profitability.…”

Section: Walter's Model (Dividend Relevant Theory)mentioning

confidence: 99%

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Impact of Dividend Payout on Profitability of Consumer Goods Firm Quoted on Nigeria Stock Exchange

Yahaya¹

2019

RJFA

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The aim of this study is to find out the impact of dividend payout on profitability of consumer goods firm quoted on the Nigerian Stock Exchange over the past seven (7) years from 2008-2014. Profitability was measured using Return on Assets (ROA) and Return on Equity (ROE). The effects of dividend payout ratio on ROA and ROE were analyzed via longitudinal panel data. The study also employed a sub-sample in order to arrive at a profound conclusion with regard to the impact of dividend policy on corporate profitability. The results of the study revealed that there was a significant relationship between dividend payout and corporate profitability in terms of return on assets and return on equity. A positive significant relationship was found between dividend payout and return on assets on one hand and return on equity on the other hand. It was recommended that, as the ultimate objective of a corporate is to maximize shareholders' wealth hence the firm value, firm mangers should design and implement a dividend policy that will enhance the corporate profitability and shareholders wealth.

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Section: Resultssupporting

confidence: 88%

Section: Resultssupporting

confidence: 88%

Section: Walter's Model (Dividend Relevant Theory)mentioning

confidence: 99%

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Impact of Dividend Payout on Profitability of Consumer Goods Firm Quoted on Nigeria Stock Exchange

Yahaya¹

2019

RJFA

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“…Conversely, Hasan M, et, al (2015) found in their study that there is a negative impact of dividend payout ratio on the profitability of a firm in Pakistan's energy and textile sector. Similarly, Md.…”

Section: Dividend Payout Ratio (Dpr)mentioning

confidence: 86%

The Effect of Internal and External Factors on the Stock Price of Pharmaceutical Companies in Emerging and Emerged Markets

2019

EJBM

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Purpose: The global financial crisis of 2008, considered by many economists to have been the most consequential since the great depression of the 1930s, altered the very fabric of global macro-economy and left many short and long-term impressions at various levels. Though the catastrophic effect of that meltdown penetrated the global market with lightning speed, the aftermath was rather uneven in its manifestation. Countries of American and European continent suffered severely but Asian countries were rather mildly affected and the reason behind this uneven perfusion could be the disparity in the economic environment at the microeconomic and macroeconomic levels in different continents.The Purpose of carrying out this research is to unveil the influence of internal microeconomic factors at firm level as well as external macroeconomic factors at country level on the overall stock price of Pharmaceutical companies of Asia's emerging market (India) and emerged markets of United States of America and Western European countries (Germany, France, UK, and Switzerland) after the global financial crisis of year 2008.Research Design/Methodology: During the present course of the investigation, secondary data of forty pharmaceutical companies from the year 2008 to the year 2017 has been employed to perform an empirical analysis. Moreover, an explanatory and comparative research design has been applied to corroborate the statistical outcome.For statistical analysis, EViews 10 student version, statistical software has been used on the dependent variable "Organization Stock Price" and several internal independent variables such as Return on Equity (ROE), Earnings Per Share (EPS), Dividend Per Share (DPS), Dividend Payout Ratio (DPR), PE ratio, firm's asset as well as few macroeconomic level independent variables such as corporate tax, inflation rate, GDP and exchange rate.Findings: Price movement of stocks is not independent in nature and doesn't follow a random walk. There are several factors responsible for the stock price movement such as investor sentiment, social, economic, environment and organization's operational and financial situation etc. This study shows how the aforementioned factors affect the stock prices of sample companies of emerging and emerged markets.Practical Implications: The outcome of this research could be helpful to managers to regulate organization's financial ratios and address the macroeconomic fluctuations to sustain the momentum of the stock price that will inadvertently increase the value of the company. From the investor's point of view, this study could provide them with better anticipation of future trends in the stock prices.Originality/Value: This study offers a contemporary review of the role of organizational and macroeconomic factors on the share price of companies and the stock market, thus contributes to the available literature in this domain.From the standpoint of financial experts and economist, there are many firm level and macroeconomic factors, play a pivotal role in the firm's f...

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“…Previous researches conducted by (Amah, 2012;Sunarya, 2013;Zulkifli et al, 2017) explained that ROA affects the DPR in a positive way. Otherwise, researches by (Atmoko et al, 2017;Hasan et al, 2015) explained that the DPR is negatively affected by ROA.…”

Section: Introductionmentioning

confidence: 97%

Determinants of Dividend Payout Ratio in Non-Financial Companies Listed

Anggraeny

Robiyanto

Sakti

2020

IJSSB

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This study aims to analyze the effect of both internal and external factors that determine the dividend payout ratio of non-financial companies listed in the IDX High dividend 20 during the period of 2015-2019. The independent variables of the company's internal factors are return on assets, earnings per share, and debt to equity ratio. The independent variables of the company's external factors are interest rates and inflation. The control variable used in this study is firm size. There were 13 companies listed in IDX High Dividend 20 by using the purposive sampling method. Data analysis used panel data regression which was analyzed three times by grouping the dividend payout ratio, low dividend, and high dividend. The results showed that the return on assets had a significant negative effect on the combined dividend payout ratio with a probability value (0.0309) and high dividend with a probability value (0.0067) smaller than the significance level (5%), but had no significant effect on the low dividend with a probability value (0.3283) greater than the significance level (5%). Earnings per share has no significant effect on the combined dividend payout ratio with a probability value (0.4151), low dividend with a probability value (0.1164), and high dividend with a probability value (0.3835) greater than the significance level (5%). It can be concluded that return on assets earning per share, firm size, and debt to equity ratio have an effect on dividend payout ratio.

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Dividend Payout Ratio and Firm’s Profitability. Evidence from Pakistan

Cited by 16 publications

References 12 publications

Impact of Dividend Payout on Profitability of Consumer Goods Firm Quoted on Nigeria Stock Exchange

Impact of Dividend Payout on Profitability of Consumer Goods Firm Quoted on Nigeria Stock Exchange

The Effect of Internal and External Factors on the Stock Price of Pharmaceutical Companies in Emerging and Emerged Markets

Determinants of Dividend Payout Ratio in Non-Financial Companies Listed

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