Dividend Payout Ratio and Firm’s Profitability: Evidence from Pakistan

Mudassar Hasan, Muhammad Ishfaq Ahmad, Muhammad Yasir Rafiq, Ramiz ur Rehman

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This paper investigates the relationship between dividend payout ratio and profitability of a firm.For this, two main sectors of Pakistan are selected, energy and textile. The study covers a timespan of 1996-2008. Firm performance is measured by earning per share (EPS) and return on assets (ROA). The results of logarithmic regression show that no matter what industry is, there is anegative impact of dividend payout ratio on next year earnings of a firm.
Original languageEnglish
Pages (from-to)441-445
Number of pages5
JournalTheoretical Economics Letters
Issue number3
Publication statusPublished - 29 Jun 2015
Externally publishedYes

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