Market Imperfections and Dividend Policy Decisions ofManufacturing Sector of Pakistan
Published By: Pakistan Institute of Development Economics (PIDE) | Published Date: June, 01 , 2014Dividend policy is an important issue of corporate finance and the present study examines the effect of market imperfections such as asymmetric information, agency costs and transaction cost of issuing external on corporate dividend policy for 138 firms selected from all major manufacturing sectors of Karachi Stock Exchange over the period 2003 to 2011. The results show that dividend yield depends on the last year’s dividend yield and current year earnings that supports the Lintner (1956) model suggesting that management follow smooth dividends and are reluctant to change dividend policy.
Author(s): Darakhshan Younis, Attiya Yasmin Javid | Posted on: Feb 03, 2016 | Views() | Download (161)