American Journal of Business and Society
Articles Information
American Journal of Business and Society, Vol.2, No.1, Jan. 2017, Pub. Date: Oct. 19, 2016
Impact of Capital Structure and Dividend Payout Policy on Firm’s Financial Performance: Evidence from Manufacturing Sector of Pakistan
Pages: 29-35 Views: 6140 Downloads: 4776
Authors
[01] Mula Nazar Khan, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
[02] Farooq Ali Khan Sherwani, Institute of Business Administration, University of the Punjab, Lahore, Pakistan.
[03] Afshan, University of the Punjab, Gujranwala Campus, Gujranwala, Pakistan.
[04] Fahad Islam, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
[05] Ghulam Kabbir, Hailey College of Commerce, University of the Punjab, Lahore, Pakistan.
Abstract
The main objective of this study is to investigate the impact of capital structure and dividend policy on the firm financial performance in Pakistani firms. Data is collected from the annual reports of companies. Panel data analysis such as OLS has been used to examine the hypothesis. Return on Assets and Return on equity has been used to measure the firm performance. According to findings there is no relation between leverage and return on assets. There is high significant relation between short term Leverage, Long term leverage, Dividend policy and return on assets. Size does not have any impact on firm return on assets. According to second modal; only leverage has significant impact on return on equity.
Keywords
Capital, Dividend, Leverage, Performance, Size
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