TITLE:
Dividend Payout Ratio and Firm’s Profitability. Evidence from Pakistan
AUTHORS:
Mudassar Hasan, Muhammad Ishfaq Ahmad, Muhammad Yasir Rafiq, Ramiz Ur Rehman
KEYWORDS:
Dividend Payout, Earning Per Share, Return on Assets
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.3,
June
29,
2015
ABSTRACT: 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.