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Determinants of Dividend with Industry wise Effect: Evidence from KSE 100 Index.

Hussain, Adnan and Mubin, Muhammad and Lal, Irfan Lal (2014): Determinants of Dividend with Industry wise Effect: Evidence from KSE 100 Index. Published in: Research Journal of Finance and Accounting , Vol. 5, No. 3 (5 December 2014)

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Abstract

This research have identified the industry-wise effect of dividend policy among non-financial listed companies of KSE – 100 Index. For this purpose data from 2006 to 2011 for 53 companies of different industries i.e. Fuel and Energy Sector, Chemicals Sector, Cement Sector, Engineering Sector, Textiles Sector and Transport and Communication Sector have been taken. Multiple Regression Analysis has been used to identify the prominent determinant of Dividend and Industry effect was captured through incorporating six dummy variables for said industries. Results highlighted that apart from profitability most powerful determinant of dividend there are other factors of life cycle, tangibility of assets are prominent whereas capital structure, size of firm and cash flows per share is not significant determinant of dividend. Apart from these variable, Industry-wise effect shows that all the above significant determinants remains significant within industry except textile sector.

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