Open Accessoard Composition, Ownership Structure and Dividend Payout Policy: Evidence from PSX-100 Index of Pakistan
Author(s) -
MUHAMMAD NAVEED AHMAD,
Farman Ullah Khan,
Yousaf Ali Khan
Publication year - 2021
Publication title -
journal of business and tourism
Language(s) - English
Resource type - Journals
eISSN - 2521-0548
pISSN - 2520-0739
DOI - 10.34260/jbt.v5i1.114
Subject(s) - dividend payout ratio , dividend policy , dividend , principal–agent problem , corporate governance , business , accounting , index (typography) , equity (law) , foreign ownership , agency cost , monetary economics , financial system , economics , finance , shareholder , macroeconomics , political science , law , foreign direct investment , world wide web , computer science
The purpose of this study is to analyze the influence of board composition, ownership structure on dividend payout policy. Ordinary Least Square and Logistic regression models were applied to test the estimation in Pakistani KSE 100-index firms for the period of 2005 to 2014. Corporate Governance (board composition and ownership structure) were taken as independent variables, dividend payout / dividend decision as dependent variables. It is ascertained that the board size, executive director, institutional, foreign ownership and return on equity are significantly influenced on dividend payout /decision. Over study results evidenced that those firms who have higher profitable provide signal to the market to pay higher dividend in Pakistani firms and intended to resolve the agency problems issues.