<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The study investigates the factors that influence dividend payout policy in public Pakistani manufacturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so all these firms were excluded from the final dataset. The study discovers that dividend payout in listed Pakistani manufacturing firms is significantly affected by ratio of short-debt, ratio of long-debt, ratio of total-debt, life cycle ratio and cash ratio. Similarly, short term debt ratio, ratio of long-debt and life cycle ratio, increase the dividend payout while cash ratio decreases the dividend distribution ratio for publically traded Pakistani manufacturing companies. The policymakers/financial advisors and decision-makers in listed Pakistani manufacturing firms should take into consideration factors such as debt financing, life cycle ratio, and cash ratio in making their dividend policies.</p>
</abstract>

The study investigates the factors that influence dividend payout policy in public Pakistani manufacturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so all these firms were excluded from the final dataset. The study discovers that dividend payout in listed Pakistani manufacturing firms is significantly affected by ratio of short-debt, ratio of long-debt, ratio of total-debt, life cycle ratio and cash ratio. Similarly, short term debt ratio, ratio of long-debt and life cycle ratio, increase the dividend payout while cash ratio decreases the dividend distribution ratio for publically traded Pakistani manufacturing companies. The policymakers/financial advisors and decision-makers in listed Pakistani manufacturing firms should take into consideration factors such as debt financing, life cycle ratio, and cash ratio in making their dividend policies.

How do dynamic financing decisions explain the behavior of dividend payout policies?

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

An Empirical Study of Listed Pakistani Manufacturing Firms

The study investigates the factors that influence dividend payout policy in public Pakistani manufacturing companies throughout the timeframe 2010-20. Pooled...

How do dynamic financing decisions explain the behavior of dividend payout policies?

Publié en ligne: 13 avr. 2022

Pages: 1 - 15

Reçu: 16 nov. 2021

Accepté: 08 déc. 2021

DOI: https://doi.org/10.2478/fiqf-2022-0001

Mots clés
dividend policy, financing decision, debt financing, equity ratio

© 2022 Zahid Bashir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

How do dynamic financing decisions explain the behavior of dividend payout policies?

Publié en ligne: 13 avr. 2022

Pages: 1 - 15

Reçu: 16 nov. 2021

Accepté: 08 déc. 2021

DOI: https://doi.org/10.2478/fiqf-2022-0001

Mots clésdividend policy, financing decision, debt financing, equity ratio

© 2022 Zahid Bashir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Mots clés
dividend policy, financing decision, debt financing, equity ratio