Impact of dividend policy on stock prices: Evidence from Pakistan

Authors

Shahid Iqbal, University of Lahore, Pakistan
Faisal Abbas, University of Lahore, Pakistan
Bilal Aziz University of Engineering and Technology, Lahore, Pakistan

Abstract

We study the impact of dividend yields and payout ratios on stock prices using an econometric model that also includes control variables such as debt leverage rates, earnings per share, total assets and asset growth. Relevant data for Pakistani companies are compiled from a variety of sources for the period 2001-2014. Econometric results show that dividend yields are negatively correlated and dividend payout ratios positively correlated with stock prices.

Keywords

Dividend policy, Market price, Dividend yield, Dividend payout

DOI

https://doi.org/10.54784/1990-6587.1069

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Recommended Citation

Iqbal, S., Abbas, F., & Aziz, B. (2016). Impact of dividend policy on stock prices: Evidence from Pakistan. Business Review, 11(2), 68-76. Retrieved from https://doi.org/10.54784/1990-6587.1069