Determinants of Dividend with Industry-Wise Effect – Evidence from KSE 100 Index

Research Journal of Finance and Accounting, Vol. 5, No.3, 2014, pp 62-69

8 Pages Posted: 22 Oct 2014

See all articles by Muhammad Mubeen

Muhammad Mubeen

Bilkent University, Department of Management, Students; IQRA University - IQRA University (Gulshan Campus)

Muneer Ahmed

Benazir Bhutto Shaheed University, Lyari, Karachi

Muhammad Farrukh Aslam

Department of Commerce

Irfan Lal

Institute of Business Management (IoBM); University of Karachi - Applied Economics Research Centre; Institute of Business Management

Adnan Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi; University of Karachi - Applied Economics Research Centre

Date Written: November 24, 2013

Abstract

This research have identified the industry-wise effect of dividend policy among non-financial listed companies of KSE 100 Index. For this purpose data from 2006 to 2011 for 53 companies of different industries i.e. Fuel and Energy Sector, Chemicals Sector, Cement Sector, Engineering Sector, Textiles Sector and Transport and Communication Sector have been taken. Multiple Regression Analysis has been used to identify the prominent determinant of Dividend and Industry effect was captured through incorporating six dummy variables for said industries. Results highlighted that apart from profitability most powerful determinant of dividend there are other factors of life cycle, tangibility of assets are prominent whereas capital structure, size of firm and cash flows per share is not significant determinant of dividend. Apart from these variable, Industry-wise effect shows that all the above significant determinants remains significant within industry except textile sector.

Keywords: Dividend Policy

Suggested Citation

Mubeen, Muhammad and Ahmed, Muneer and Aslam, Muhammad Farrukh and Lal, Irfan and Hussain, Adnan, Determinants of Dividend with Industry-Wise Effect – Evidence from KSE 100 Index (November 24, 2013). Research Journal of Finance and Accounting, Vol. 5, No.3, 2014, pp 62-69, Available at SSRN: https://ssrn.com/abstract=2500828

Muhammad Mubeen (Contact Author)

Bilkent University, Department of Management, Students ( email )

Ankara
Turkey

IQRA University - IQRA University (Gulshan Campus) ( email )

Abid Town, Block-2, Gulshan-e-Iqbal
Karachi, Sindh 75300
Pakistan

Muneer Ahmed

Benazir Bhutto Shaheed University, Lyari, Karachi

Faqir Mohammad Dura Khan Road,
Near cheel chowk
Karachi, Sindh 75500
Pakistan

Muhammad Farrukh Aslam

Department of Commerce ( email )

University of Karachi
University Road
Karachi, Sindh
Pakistan

Irfan Lal

Institute of Business Management (IoBM) ( email )

Plot # 84
Korangi Creek
Karachi, Sindh 75190
Pakistan

University of Karachi - Applied Economics Research Centre ( email )

Main University Road
Karachi University
Karachi, SC Sindh 75270
Pakistan
00923212348843 (Phone)

Institute of Business Management ( email )

D-93040 Regensburg
Germany

Adnan Hussain

Benazir Bhutto Shaheed University, Lyari, Karachi ( email )

Faqir Mohammad Dura Khan Road,
Near cheel chowk
Karachi, Sindh 75500
Pakistan

HOME PAGE: http://www.bbsul.edu.pk

University of Karachi - Applied Economics Research Centre ( email )

Mail University Road
Karachi University
Karachi, SC Sind 75270
Pakistan

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