While recognizing the limits of the study, this proposition speaks to one of the complete studies in regard to profits by Pakistan to date. Also, it is among the main studies to study the behavioral part of profit strategy in a developing setting, particularly as respects the determinants and indicating speculation. Thusly, this examination should go about as a going stone for future research around there. As talked about, the Pakistani business sector is emphasized on one of a kind tariff framework where capital increases were exempted from levies amid the example time of the study and kept on being so until June 2010. Hence, further research might be possible to study the effect of the levy change of profit strategy in Pakistan. The evident manifestation of this examination to take would be of the nature proposed to Black and Scholes (1974) and Litzenberger and Ramaswamy (1982). The long-run relationship between (pretax) returns and profits is researched, gives the change in Pakistan charge framework. A solid positive relationship would be required preceding the inconvenience of capital increases impose in 2010.

When it is hard to understand how to complete the ASA title page, ask your instructor or professor to give you the ASA title page example, or find it yourself online, i.e. at Pro-Papers website.

The writing demonstrates that speculators have a tendency to incline towards capital additions to profits in situations where the profit is moderately vigorously burdened. Also, future examination might be possible on concentrating on the relationship between possession structure and profit approach as the Pakistani business keeps on being ruled by family-possessed organizations. Various examination studies have recorded that possession structure essentially influences the profit choice methodology and, subsequently, affects the estimation of the organizations of a roundabout way. Future examination could accomplish generalizability by including a bigger specimen for the occasion ponder and additionally a higher number of respondents in the meetings. In addition, such exploration ought to be directed at other developing markets of the world, particularly the South. Asian nations, as it will bring equivalence to the examination.

The behavior of examination in other developing markets will improve the understanding of why these businesses carryon uniquely in contrast to created markets. There is additionally an earnest requirement for mulling over the conduct of offer costs of related proclamations, for example, stock profits, rights issue and the joint proclamations of stock and money profits, as Zaman (2007) recorded for his exploration for Pakistani firms. Nonetheless, Zaman (2007) utilized an extremely minor specimen of just six recorded firms; along these lines, a vast specimen of incidental advertisements would encourage extensive scope of powerful conclusions to be drawn. Further work should take a gander at transactions by executives promptly before or after real proclamations, for example, the revelation of a profit; as this issue was lost in the current study because of the inaccessibility of information.





Job designation: ............................

Experience: ...................................

Age: ..............................................

Company Name: ...........................

Industry: ........................................

Listing on exchanges other than the Karachi Stock Exchange (Local or

Foreign) ………………………….

  1. Does your company pay dividend or not?
  2. Is the dividend decision taken by board of directors?
  3. Does the Board of Directors decide on the amount of dividend or set the dividend per share (DPS)?
  4. Which of the following influence on the dividend decision? How do they influence this decision?
  5. a) Current year’s earnings
  6. b) Last year’s earnings
  7. c) Last year’s dividend
  8. d) Share price
  9. e) Current liquidity/ Cash flow
  10. f) Taxation on dividend
  11. g) Industry behavior
  12. Which of the above is the main influence?
  13. Do the third parties (Govt, financial institutions, tax department etc.) have any influence upon the dividend policy of your company?
  14. Does your company consider shareholders preferences regarding dividends?
  15. Is the dividend based on the last year’s dividend plus a percentage increase?


  1. Does your company have a target dividend payout ratio?
  2. Does your company revise this ratio frequently or does the one payout ratio continue for several periods?
  3. Does your company gradually increase the actual payout ratio to achieve the target payout over a period of years?
  4. Does the company’s dividend policy fluctuate with the firm’s change in investment?
  5. Is the dividend decision a residual after investment needs have been determined?
  6. Does the company try to avoid changes in dividend which can be reversed in a year or so?


Listed companies of KSE up to 2013


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Battacharya, S. and Hakansson, N.H., 1982. Dividend policy and valuation: theory and tests. The Journal of Finance, 37(2). 415-428.

Bhattacharya, S. Imperfect information, dividend policy and “The Bird in the Hand” fallacy, 2009. The Bell Journal of Economics. 259-270.

Borges, M.R., 2008. If the dividend puzzle solved? School of Economics and Management, 3(8), 1-8.

Caelers, L., 2010. The relation between dividend policies and agency conflicts. Evidence on European listed firms. Tulburg University. 1-37.

Grigore, M.Z. and Ştefan-Duicu, V. M., 2010. Agency theory and optimal capital structure. Challenges of the Knowledge Society. Economics, 862-868.

DeAngelo, H.,  DeAngelo, L. and Skinner,    D.J., 1996. Reversal of fortune: dividend policy and the disappearance of sustained earnings growth. Journal   of   Financial   Economics, 40(3), 341-371.

Habib, Y., Kiani, Z.I. and Khan, M.A., 2012. Dividend Policy and Share Price Volatility: Evidence from Pakistan. Global Journal of Management and Business Research. 7(5).

Hamid, Z., Hanif, C.A., Saif-Ul-Malook, S. and Wasimullah, 2012. The effect of taxes on dividend policy of banking sector in Pakistan. African Journal of Business Management, 6(8), 2951-2954.

Hussain, F. & Qasim, M.A., 1997. The Pakistani Equity Market in 50 Years: A Review. The Pakistan Development Review, 36(4), 863-872.

Iqbal, J., 2008. Stock market in Pakistan: an overview. MPRA, 11868(4), 1-36.

Jensen, M.C., 1986. Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review, 76(2), 323-329.

Kaleem, A. and Salahuddin, C., 2006. Impact of Dividend Announcement on Common Stock Prices at Lahore Stock Exchange (Pakistan). South Asian Journal of Management, 13.

Khan, T. 2005. Company dividends and ownership structure: Evidence from UK panel data. Institute of Fiscal Studies, 1-19

Khan, N.U., Burton, B.M., Power and D.M., 2011. "Managerial views about dividend policy in Pakistan", Managerial Finance, Vol. 37 Iss: 10, pp.953 – 970

Kinkki, S., 2001. Dividend puzzle – a review of dividend theories. LTA, 1(01), 58-97.

Laughlin, R., 1995. Empirical Research in Accounting: Alternative Approaches and a Case for Middle Range Thinking. Accounting, Auditing and Accountability Journal, 8, 63-87.

Lintner, J., 1956. Distribution of incomes of corporations among dividends, retained earnings, and taxes. American Economic Review, 46, 97-113.

Magni, C.A., 2007. Relevance or irrelevance of retention for dividend policy irrelevance. MPRA, 5591, 1-16.

Michaely, R., 2006. Dividend smoothing, agency costs, and information. Asymmetry: lessons from the dividend policies of private firms. Pennsylvania: The Wharton School, University of Pennsylvania.

Miller, M. H., and Modigliani, F., 1961. Dividend Policy, Growth, and the Valuation of Shares, Journal of Business 34, 411-433.

Mir, S. R. and Nishat, M, 2004. Corporate Governance Structure and Firm Performance in Pakistan- An Empirical Study. Securities and Exchange Commision of Pakistan‟s Second Annual Conference on Corporate Governace. LUMS

Mollah, A.S., 2001. Dividend Policy and Behaviour, and Security Price Reaction to The Announcement of Dividends in an Emerging Market - A Study of Companies Listed on the Dhaka Stock Exchange. Leeds University Business School, University of Leeds.

Mubarik. F, 2008. The Impact of Dividend Announcement on Share Price of Oil and Gas Marketing Sector of Pakistan. NUML Journal of Management and Technology, 2, 7-13.

Mustafa, K. and Nishat, M, 2007. Testing for Market Efficiency in Emerging Markets: A Case Study of the Karachi Stock Market. The Lahore Journal of Economics, 12 : 1, 119-140

Naeem, S. and Nasr, M., 2007. Dividend policy of Pakistani Firms; Trends and Determinants. International Review of Business Research Papers, 3(3), 242-254.

Narayan, P., Smyth, R., and Nandha, M., 2004. Interdependence and Dynamic Linkages between the Emerging Stock Markets of South Asia. Accounting and Finance, 419-439

Nishat and Irfan, n.d.  Dividend Policy and Stock Price Volatility in Pakistan. Purmessur, R.D. and Boodhoo, R., 2009. Signaling power of dividend on firms’ future profits. International Interdisciplinary Journal, 11(2), 1-9.

Pettit, R., 1972. Dividend announcements, security performance and capital market efficiency. Journal of Finance, 27, 993-1007.

Poterba, J. M., 1986. The Market Valuation of Cash Dividends. Journal of Financial Economics, 395-405.

Poterba, J. M., and L. H. Summers, 1984. New Evidence That Taxes Affect the Valuation of Dividends. Journal of Finance, 1397-1415.

Poterba, J.M. and Summers, L.H., 1984. New evidence that taxes affect the valuation of dividends. The Journal of Finance, 38(5), 1397-1415

Rasheed, A., 2008. Historical Development. Pakistan Economic Policy

Rau, P. R., Vermaelen T., 2002. Regulation, taxes, and share repurchases in the U.K. Journal of Business, 245-282.

Rennack, D. E., 2001. India and Pakistan: Current U.S. Economic Sanctions. Congressional Research Service. The library of Congress.

Rishma, V., Rafiqul, B. Rahman, Z., 2007. Impact of dividend announcement over shareholders' wealth: a case of emerging stock market of Bangladesh. Journal of International Finance and Economics

Rishma, V., Bhuyan, R., and Zahedur, R., 2007. Impact of Dividend Announcement over Shareholders‟ Wealth: A Case of Emerging Stock Market of Bangladesh. Journal of International Finance and Economics.

Rozeff, M, S., 1982. Growth, Beta and Agency Costs as Determinants of Dividend payout Ratios, The Journal of Financial Research 5, 249-259.

Saunders, M., Lewis, P. and Thornhill, A., 2007. Research Methods for Business Students. Prentice Hall.

Salman, S.A., 2005. Islamic capital market products. Jeddah: Islamic Development Bank.

Shaheen, R. and Nishat, M., 2005. Corporate Governance and firm performance- Anexploratory Analysis. Securities and Exchange Commission of Pakistan‟s Second Annual Conference on Corporate Governance. LUMS

Sekaran, U., 2002. Research Methods for Business: A Skill-Building Approach.  International Edition

Siddiqui, S. H., 2006. KARACHI: Stock Market Crash: Large-Scale Cover-Up Alleged. Dawn Newspaper.

Singhania, M., 2006. Taxation and corporate payout policy. Vikalpa, 31(4), 47-64.

Standard & Poor‟s Global Stock Markets Factbook, 2009

Strong, N., 1992. Modelling Abnormal Returns: A Review Article. Journal of Business Finance and Accounting, 19, 533–53.

Taylor, S.J. and Bogdan, R., 1984. Introduction to Qualitative Research Methods. Wiley. New York.

Tahir, A., 2011. Capital market efficiency: evidence from Pakistan. Interdisciplinary Journal of Contemporary Research in Business, 3(8), 947-953.

Tahir, S.H., Sabir, H.M., Alam, T. and Ismail, A., 2013. Impact of firms’ characteristics on stock return: a case of non-financial listed companies in Pakistan. Asian Economic and Financial Review, 3(1), 51-61.

Tijjani, B., 2008. An Empirical Investigation of the Equity Investment and Share Valuation Process in Nigeria. School of Accounting and Finance. University of Dundee, UK

Truong, T., and Heaney, R., 2007. Largest Shareholder and Dividend Policy around the World. The Quarterly Review of Economics and Finance.

Watt, R. and R. Leftwich, 1977. The Time Series Properties of Annual Accounting Earnings. Journal of Accounting Research 15.

Woolridge, J.R. and Ghosh, C., 1985, Dividend cuts: Do they always signal bad news? Midland Corporate Finance Journal.

Zameer, H., Rasool, S., Iqbal, S. and Arshad, U., 2013. Determinants of dividend policy: a case of banking sector in Pakistan. Middle-East Journal of Scientific Research, 18(3), 410-424.

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