The Determinants of Corporate Dividend Policy: An Investigation of Pakistani Banking Industry

The paper investigates the impact of different firm specific factors on the dividend policy of companies by selecting a sample of 18 banks listed in KSE for the period 2006-2011. The dependent variable is dividend policy where as explanatory variables include, firm size and risk, profitability, firm’s growth and leverage. It was found that out of 18 banks 11 banks pay dividends whereas seven banks do not. The results have shown that the independent variables growth, profitability and firm size have positive coefficient of correlation when the dependent variable is dividend yield and Dividend Payout Ratio. However there is strong linear association between profitability and firm size with dividend policy but the variable growth rate has weak positive correlation with dividend policy. In contrast, the variables leverage and firm risk has inverse linear relationship with dividend policy. Banks that pay dividends were found, when we use method of correlation coefficient more profitable, stable and less risky as compare to banks that do not pay dividends. Keywords: Dividend Policy, Listed Banks, Pakista

Leadership Styles, Turnover Intentions and the Mediating Role of Organizational Commitment

The aim of this research article is to investigate the association between leadership styles, organizational commitment and turnover intentions. In particular, this study focuses on the mediation effect of organizational commitment on the association between styles of leadership and turnover intentions. One hundred and seventy (170) questionnaires were distributed and one hundred and twenty one (121) questionnaires were returned, indicating a response rate of 71.2%. A non-probability convenience sampling technique was used to collect data. The population of this study consists of the insurance sector of Pakistan. Employees working at different hierarchal level were targeted, comprising non-managerial and managerial levels including upper, middle, and lower level management. The data were analyzed by using statistical package of SPSS 20th version. It was found that there is negative insignificant association between turnover intentions and transactional and transformational leadership styles. Also, organizational commitment mediated the association between styles of leadership and turnover intentions. Managers should be aware of the advantages and disadvantages of different leadership styles as these may affect organizational commitment of subordinates and eventually, positive or negative effect on turnover intentions. Keywords: Styles of Leadership, Employee Turnover Intentions, Organizational Commitment, Insurance Companies, Pakistan