Effect of Dividend Policy on Share Holders Wealth: A Study of Sugar Industry in Pakistan

Mohammad Salman Sarwar

Authors

Mohammad Salman Sarwar

Keywords:

dividend policy, shareholder2019;s wealth, dividend per share (DPS), market price per share (MPS), price earnings ratio (PER), pakistan

Abstract

The present paper focuses on the impact of dividend policy on shareholder's wealth in sugar industries of Pakistan. For this study we have selected the sample of 33 listed companies of sugar industry out of 36 at Karachi Stock Exchange from the food and producers sector. The data is collected for the period of 6 years from the year 2006 to 2011. For this study descriptive statistics and multiple regression analysis is used by taking dividend per share (DPS), earnings per share(EPS), Lagged Market Price Ratio (LMPR), Lagged Price Earnings Ratio (LPER) Price Earnings Ratio (PER) Retained Earnings Ratio (RER) as independent variables and market price per share (MPS) as dependent variable. The R2 shows that 99% variations in MPS are due to the explanatory variables. The p value of the f statistic shows that all the regressors have jointly significant relationship with dependent variable (MPS).

Downloads

How to Cite

Effect of Dividend Policy on Share Holders Wealth: A Study of Sugar Industry in Pakistan. (2013). Global Journal of Management and Business Research, 13(C7), 47-54. https://journalofbusiness.org/index.php/GJMBR/article/view/1027

Download Citation

References

R Azhgaiah, Sabri Priya (2008) The impact of Dividend Policy on Shareholder Wealth. 20, 180-187.

Gull (2012) The relationship between Dividend Policy and Shareholder's Wealth. 2(2), 55-59.

Mgbame Okafor (2011) Dividend Policy and Share Price Volatility in Nigeria. 9.

Habib (2012) Dividend Policy and Share Price Volatility: Evidence from Pakistan. 12(5).

Khan (2012) Effect of Dividend on Stock Price. 2(5), 141-148.

Nazir (2010) Determinants of Stock Price Volatility in Karachi Stock Exchange: The Mediating Role of Corporate Dividend Policy.

Zulkifli (2012) The impact 0f Dividend Policy on the Share Price Volatility. 2(5), 1-08.

Merton Miller, Kevin Rock (1985) Dividend Policy under Asymmetric Information. 40(4), 1031-1051.

M Gordon (1962) The investment financing and Valuation of corporation.

Hashemijoo (2012) The impact of Dividend Policy on Share Price Volatility in Malaysian Stock Market. 4(1), 111-129.

S Mokaya, James Nyang'ara (2013) The effect of Dividend Policy on Market Share Value in Banking Industry; The case of National Bank of Kenya. 2(2).

Rahman Rashid (2006) Dividend Policy and Stock Price Volatility.

Pani (2008) Dividend Policy and Stock Price Behavior in Indian Corporate Sector" Profilet and Bacon. 20(1).

A Khan, K Khan (2011) Dividend Policy and Stock Prices -A Case of KSE-100 Index Companies.

Rabindra Joshi (2011) Effects of Dividends on Stock Prices in Nepal. 24(2), 61-75.

Muhammad Asghar Impact of Dividend Policy on Stock Price Risk: Empirical Evidence from Equity Market of Pakistan. 4(1).