Modeling Dividend Behavior in Pakistan

This study examines the determinants of dividend policy by Lintner (1956) and Braittan (1966) and their extended versions to examine their relative significance in the Pakistani context. The sample consists of thirty-five firms in the overall manufacturing sector and three sub-sectors: textile, energy and chemicals the period 2007 to 2009. The analysis reveals that Lintner model is better than other models examined in the study and net profit and lag dividends are important determinants of dividend policy in Pakistani manufacturing sector. The depreciation and liquidity has significant impact on the dividend policy when included in the Lintner model while investment demand, interest rate, share price behavior and debt turn out to be insignificant. The results imply that for dividend decisions, past dividends, profits and depreciation matters and Lintner model fits the data well in case of manufacturing sector of Pakistan

The Dividend Policy in Manufacturing Sector of Pakistan: The Perception of Corporate Managers

Using a survey approach, this paper examines the perceptions of managers of dividend-paying firms listed on Karachi Stock Exchange (KSE) on factors influencing dividend policy, issues relating dividend policy and the corporate governance practices. The survey shows that the most important factors that affect dividend policy are; the level of current earnings, the projection about the future state of the economy, the stockholders characteristics, concerns about the stock prices, need of current stockholders. From a practical perspective, there is little discrimination among the top ranked factors. All the surveyed firms formulate their dividend policies according the theoretical model of Lintner (1956). The survey also shows that there is no difference in responses about these factors with respect to various titles of the respondents such as chief financial officer or Chief Exceptive Officer. The survey also finds strong support for the life cycling theory followed by agency theory, signaling theory and the catering theory respectively. The survey also shows the presence of corporate governance practices in the surveyed firms

Sustainable Management Practices and Stakeholder Pressure:A Systematic Literature Review

This paper aims to summarize and analyze what is known regarding the ways in which stakeholder pressure may influence sustainable practices. Furthermore, this study extends this understanding to the development of several research opportunities for further investigation. A systematic extensive literature review was performed to investigate the relationship between stakeholder pressure and sustainable management practices. This literature review shows that organizational factors are more widely covered than the individual and macro-level factors as moderating variables, and suggests more organizational-, individual-, and macro-level factors, as well as the interaction of these factors as moderating variables on the link between stakeholder pressure and sustainable management practices. Furthermore, the use of the stakeholder theory is dominant, followed by the use of the institutional theory. The manufacturing sector is widely covered, survey methodology is extensively used, and the environmental dimensions are more addressed than the social dimensions of sustainability. The relationship between stakeholder pressure and the adoption of sustainable management practices is not obvious, due to the varied results. Therefore, it is difficult to establish a direct relationship between stakeholder pressure and the adoption of sustainable management practices. This study furthers insight into the stakeholder pressure influence on sustainable management practices by reviewing the comprehensive literature and suggesting future research opportunities

Modeling Dividend Behavior in Pakistan

This study examines the determinants of dividend policy by Lintner (1956) and Braittan (1966) and their extended versions to examine their relative significance in the Pakistani context. The sample consists of thirty-five firms in the overall manufacturing sector and three sub-sectors: textile, energy and chemicals the period 2007 to 2009. The analysis reveals that Lintner model is better than other models examined in the study and net profit and lag dividends are important determinants of dividend policy in Pakistani manufacturing sector. The depreciation and liquidity has significant impact on the dividend policy when included in the Lintner model while investment demand, interest rate, share price behavior and debt turn out to be insignificant. The results imply that for dividend decisions, past dividends, profits and depreciation matters and Lintner model fits the data well in case of manufacturing sector of Pakistan