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 time
span 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 a
negative impact of dividend payout ratio on next year earnings of a firm.
Original languageUndefined
Pages (from-to)441-445
Number of pages5
JournalTheoretical Economics Letters
Publication statusPublished - 29 Jun 2015

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