Determinants of dividend payout : evidence from the oil and gas industry of Pakistan | |
| Author | Tahir, Muhammad |
| Call Number | AIT RSPR no.SM-15-14 |
| Subject(s) | Petroleum industry and trade--Pakistan Dividends--Pakistan |
| Note | A research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-15-14 |
| Abstract | This study aims to investigate the determinants of dividend payout in Oil and Gas industry of Pakistan. Secondary data from published annual reports of eleven (11) Oil and Gas companies listed on Karachi Stock Exchange (KSE) covering the time period from 2008 - 2014 has been used. Depe ndent variable of this study is dividend payout whereas explanatory variables include profitability, firm size , financial leverage, sales growth, investment opportunities, liquidity, business risk, and ownership structure . Panel data technique is used due to panel characteristics of the data. Ordinary least square (OLS) reg ression model has been used to find the impact of set of explanatory variables on the dividend payou t using the Stata . OLS regression results suggest that financial leverage, sales growth and business risk are the most significant variables of the study. Financial leverage and business risk are found to have significant negative effect on dividend payout while sales growth has favorable impact on divid end payout. Other significant variables include profitability, firm size and government owners hip. Results reveal significant positive link of profitability and firm size with dividend payout whereas government ow nership is negatively associated with divid end payout. Investment opportunities, liquidity and managerial ownership showed insignificant relationship with dividend payoutThis study aims to investigate the determinants of dividend payout in Oil and Gas industry of Pakistan. Secondary data from published annual reports of eleven (11) Oil and Gas companies listed on Karachi Stock Exchange (KSE) covering the time period from 2008 - 2014 has been used. Depe ndent variable of this study is dividend payout whereas explanatory variables include profitability, firm size , financial leverage, sales growth, investment opportunities, liquidity, business risk, and ownership structure . Panel data technique is used due to panel characteristics of the data. Ordinary least square (OLS) reg ression model has been used to find the impact of set of explanatory variables on the dividend payou t using the Stata . OLS regression results suggest that financial leverage, sales growth and business risk are the most significant variables of the study. Financial leverage and business risk are found to have significant negative effect on dividend payout while sales growth has favorable impact on divid end payout. Other significant variables include profitability, firm size and government owners hip. Results reveal significant positive link of profitability and firm size with dividend payout whereas government ow nership is negatively associated with divid end payout. Investment opportunities, liquidity and managerial ownership showed insignificant relationship with dividend payout |
| Year | 2015 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-15-14 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Supasith Chonglerttham; |
| Examination Committee(s) | Juthathip Jongwanich;Badir, Yuosr; |
| Scholarship Donor(s) | University of Turbat Baluchistan, Pakistan; |
| Degree | Research report (M. BA.) - Asian Institute of Technology, 2015 |