Antecedents of Dividend Policy: Empirical Evidence from Banking Sector of Pakistan

This paper explores the determinants of dividend policy of commercial banks operating in Pakistan. Dividend decision of any bank primarily depends upon its profitability, retained earnings, cash flows, corporate taxes and leverage. This study is an attempt to find out key determinants and their impact on cash payout and total payout ratios. It also aims to test the implication of dividend theories on Pakistani banks using data for a period of 8 years ranging from 2006 to 2013. Balanced panel data regression with fixed effects model has been used in this study. All independent variables - PAT, SLACK, EPS, CTA and TD[1] reported significant results. We found significant role of profitability theory, packing order theory, free cash flow theory and agency cost theory in determining dividend policies whereas, tax effect and financial slack has no effect in banking sector of Pakistan. [1] Profitability, retained earnings, earnings per share, cash flows, and leverag

Macroeconomic Covariates of Default Risk: Case of Pakistani Non-Financial Firms

Empirical estimation of default probability through structural approach in the context of macroeconomic dynamics turn out be an emerging idea. However, various aspects of these studies are still needs to be explored to make these models more reliable. This study explored the structural model of default risk (Moody’s KMV) application with macroeconomic dynamics in Pakistani non-financial firm’s context and confirm whether Moody’s KMV model of default prediction could be applicable in Pakistan where the markets are highly speculative and stock markets are highly volatile. The study approximate about the expected default frequency (hereafter EDF) of 307 Pakistani non-financial firms, categorized in 12 industries for a span of 8 years from 2004 to 2011. It further check the macroeconomic variables effects on EDF with the use of generalized method of moments (hereafter GMM). Empirical results compared with the real life scenarios over the said years and on the basis of results we infer that Moody’s KMV model can predict default probability in a much better way than traditional ratio based approach

Antecedents of Dividend Policy: Empirical Evidence from Banking Sector of Pakistan

This paper explores the determinants of dividend policy of commercial banks operating in Pakistan. Dividend decision of any bank primarily depends upon its profitability, retained earnings, cash flows, corporate taxes and leverage. This study is an attempt to find out key determinants and their impact on cash payout and total payout ratios. It also aims to test the implication of dividend theories on Pakistani banks using data for a period of 8 years ranging from 2006 to 2013. Balanced panel data regression with fixed effects model has been used in this study. All independent variables - PAT, SLACK, EPS, CTA and TD[1] reported significant results. We found significant role of profitability theory, packing order theory, free cash flow theory and agency cost theory in determining dividend policies whereas, tax effect and financial slack has no effect in banking sector of Pakistan. [1] Profitability, retained earnings, earnings per share, cash flows, and leverag

Dosimetry Characterization of Unknown Dye Polyvinyl Alcohol Films

In the present study chemical dosimeters having aqueous solutions of crystal violet commercial dye were irradiated by Co60 γ source in the range (0-120)KGy. The standard aqueous solutions were scanned by UV/VIS spectrophotometer for the determination of maximum wave length (λmax) which was found to be 591nm at this value maximum absorbance was found to be 3.5; it was also observed that with increase in dose, absorbance decreases correspondingly. At this value, the absorbance (A) of irradiated samples was measured in UV region. The plot between concentration C and A gave approximate linear relationship and hence verified Beer’s Law which proved that these dye solutions can satisfactorily be used as the dye dosimeters in 0-120kGy gamma dose range

Dosimetry Characterization of Unknown Dye Polyvinyl Alcohol Films

In the present study chemical dosimeters having aqueous solutions of crystal violet commercial dye were irradiated by Co60 γ source in the range (0-120)KGy. The standard aqueous solutions were scanned by UV/VIS spectrophotometer for the determination of maximum wave length (λmax) which was found to be 591nm at this value maximum absorbance was found to be 3.5; it was also observed that with increase in dose, absorbance decreases correspondingly. At this value, the absorbance (A) of irradiated samples was measured in UV region. The plot between concentration C and A gave approximate linear relationship and hence verified Beer’s Law which proved that these dye solutions can satisfactorily be used as the dye dosimeters in 0-120kGy gamma dose range