2016

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Browsing 2016 by Author "SADIA REHMAN"

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    Measuring the Impact of Corporate Governance on Dividend Payouts
    (UMT, Lahore, 2016) SADIA REHMAN
    The main objective ofthis study is to examine the impact ofcorporate governance on dividend payouts in the context of non financial sector companies in Pakistan. Ail compames have a sound ground for agency theory and it guided to management that they should work for the benefit and in the interest of investors. This study has a primary object to check the impact ofCG on dividend payments. Because it was just a prepositional theory that dividend payment may cause to reduce the agency cost. So it has been verified through this research work. This work also helpful to investors in the context that it will suggest a layout to the shareholders in the form of dividend paid, to adopt the corporate governance system for organization. For this purpose a sample set of60 non financial companies related to different sector has been extracted with random sampling technique from Karachi Stock Exchange. All compames almost having same firm size value. Dividend payout has been measured through dividend per share. On other hand,corporate governance is measured through two determinants named as, board composition and ownership structure. Board composition has two variables named as, board size and board gender. However,ownership structure has three variables named as, individual ownership,institutional ownership and director's ownership. Sales growth, profitability (earnings per share)and leverage (debt ratio) has been taken as control variables in study. VII ' Results showed board size and board gender both have negative impact on dividend per share. The relation of both with dependent variables is significant. However,Individual ownership has negative impact on dividend per share and has significant relation. Institutional ownership has positive impact of DPS,but director's ownership has negative impact on DPS. But both are insignificant. These hypotheses are rejected. On other hand, sales growth has negative impact on dividend share and earnings per share has positive impact on dividend per share, but both have significant relation with dividend per share