Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan

This study investigates the determinants of dividend payout of listed firms in Pakistan from the year 2011 to 2015. The focus of the study is the life cycle theory of dividends, agency theory and signaling theory. Corporate governance indicators, firm efficiency and cash flow volatility are the main...

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Main Author:	Hussain, Haroon
Format:	Thesis
Language:	eng eng eng eng
Published:	2018
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/8780/1/Deposit%20Permission-not%20allow_s99164.pdf https://etd.uum.edu.my/8780/2/s99164_01.pdf https://etd.uum.edu.my/8780/3/s99164_02.pdf https://etd.uum.edu.my/8780/4/s99164_references.docx
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id	my-uum-etd.8780
record_format	uketd_dc
spelling	my-uum-etd.87802021-11-16T03:05:49Z Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan 2018 Hussain, Haroon Md-Rus, Rohani Al-Jaifi, Hamdan Amer Ali Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance This study investigates the determinants of dividend payout of listed firms in Pakistan from the year 2011 to 2015. The focus of the study is the life cycle theory of dividends, agency theory and signaling theory. Corporate governance indicators, firm efficiency and cash flow volatility are the main determinants used in this study. This study also includes eight corporate governance indicators namely insider ownership, ownership concentration, institutional ownership, board independence, board size, CEO duality, audit committee independence and remuneration committee. It is found that ownership concentration, institutional ownership, CEO duality, firm efficiency and cash flow volatility are the significant determinants of dividend payout in Pakistan. It is also found that growth opportunities significantly moderate the impact of ownership concentration, institutional ownership, CEO duality, firm efficiency, cash flow volatility on the dividend payout. This research is among the pioneer studies which examine the impact of firm efficiency on dividend payout. Likewise, the study is among the first attempts to incorporate growth opportunities as moderating variable in the relationship between corporate governance indicators, firm efficiency and cash flow volatility with dividend payout. The findings of current study regarding moderating effect of growth opportunities imply that agency-based life cycle theory and signaling theories are complementary theories. The direct impact of firm efficiency on dividend payout implies that management of efficient firm pays high dividend to increase their reputation in the market. Furthermore, the interaction effect of firm efficiency and growth opportunities on dividends payout imply that negative signaling effect of dividend omission may not prevail for the efficient firms. It implies that efficient firms having growth opportunities may skip dividends because there is no reason to pay dividends as an alternative governance mechanism. 2018 Thesis https://etd.uum.edu.my/8780/ https://etd.uum.edu.my/8780/1/Deposit%20Permission-not%20allow_s99164.pdf text eng staffonly https://etd.uum.edu.my/8780/2/s99164_01.pdf text eng staffonly https://etd.uum.edu.my/8780/3/s99164_02.pdf text eng staffonly https://etd.uum.edu.my/8780/4/s99164_references.docx text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Md-Rus, Rohani Al-Jaifi, Hamdan Amer Ali
topic	HG Finance
spellingShingle	HG Finance Hussain, Haroon Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
description	This study investigates the determinants of dividend payout of listed firms in Pakistan from the year 2011 to 2015. The focus of the study is the life cycle theory of dividends, agency theory and signaling theory. Corporate governance indicators, firm efficiency and cash flow volatility are the main determinants used in this study. This study also includes eight corporate governance indicators namely insider ownership, ownership concentration, institutional ownership, board independence, board size, CEO duality, audit committee independence and remuneration committee. It is found that ownership concentration, institutional ownership, CEO duality, firm efficiency and cash flow volatility are the significant determinants of dividend payout in Pakistan. It is also found that growth opportunities significantly moderate the impact of ownership concentration, institutional ownership, CEO duality, firm efficiency, cash flow volatility on the dividend payout. This research is among the pioneer studies which examine the impact of firm efficiency on dividend payout. Likewise, the study is among the first attempts to incorporate growth opportunities as moderating variable in the relationship between corporate governance indicators, firm efficiency and cash flow volatility with dividend payout. The findings of current study regarding moderating effect of growth opportunities imply that agency-based life cycle theory and signaling theories are complementary theories. The direct impact of firm efficiency on dividend payout implies that management of efficient firm pays high dividend to increase their reputation in the market. Furthermore, the interaction effect of firm efficiency and growth opportunities on dividends payout imply that negative signaling effect of dividend omission may not prevail for the efficient firms. It implies that efficient firms having growth opportunities may skip dividends because there is no reason to pay dividends as an alternative governance mechanism.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Hussain, Haroon
author_facet	Hussain, Haroon
author_sort	Hussain, Haroon
title	Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
title_short	Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
title_full	Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
title_fullStr	Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
title_full_unstemmed	Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan
title_sort	determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from pakistan
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/8780/1/Deposit%20Permission-not%20allow_s99164.pdf https://etd.uum.edu.my/8780/2/s99164_01.pdf https://etd.uum.edu.my/8780/3/s99164_02.pdf https://etd.uum.edu.my/8780/4/s99164_references.docx
_version_	1747828459264016384

Determinants of corporate pay-out policy and the moderating effects of firm's growth: evidence from Pakistan

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