Literature Review on Dynamics and Determinants of Dividend Policy in Pakistan Evidences from Pakistan

Abstract

The natural approach is undertaken by all the researchers regarding critical literature review is to make a target oriented attempt to categorize all the existing writings in to different relevant groups or classifications that fall within our area of interest and to find out main pillars of our discussion to support our research gaps as a point of helping argument in our study. Identifying all the principal authors of different research works by "backtracking" from a well-known, recent contribution to the oldest contributions in the same area of work. Same is the case with the present study, where literature review of all relevant work has been rigorously attempted to find out research gaps or research questions.

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“…The financial aspects include mergers, acquisitions, asset prices, capital budgeting, and capital structure theories. The factors affecting shareholder earnings, include distribution ratio, additional capital, financing methods, business cycles, government policies, political stability, tax policies, liquidity position, and the cash balance (Islam et al, 2017). The theoretical underpinnings of dividend policy model can be affecting by agency costs, transaction costs, taxes, shareholder demands or preferences, informational content, and customer effects.…”

Accelerating Company Performance through Dividend Payout Policy: A Trend Analysis of Automobile Sector Listed in Pakistan Stock Exchange

“…There are various determinants of dividends and some predictors that can help the firms and researchers about the dividend-puzzle. These predictors include nature of industry, area of work, profit distribution ratio, additional capital and methods of financing, age of the corporation, trade cycles, policies of government, political stability, taxation policies, liquidity position and cash balance (Islam et al, 2017). The theoretical basis of the dividend payout policy and dividend models are agency costs, transaction costs, taxes, demands or preferences of shareholders, informational content and clientele effects.…”