http://dx.doi.org/10.31703/glsr.2023(VIII-I).05
10.31703/glsr.2023(VIII-I).05
Published : Mar 2023
Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan
This empirical study examines the controversial relationship between dividend policy and stock prices on the Pakistan Stock Exchange while considering legal implications. Sample data for 18 listed commercial banks (2012-2019) were collected from financial sources. Panel data analysis and several regression models (random effects, fixed effects, and Hausman test) were used. The study shows that cash dividends and dividend yields have a large impact on stock prices, while variables such as earnings per share, retention rates, and after-tax earnings do not. This result contributes to our understanding of the Pakistan stock market and is relevant to emerging and developing markets. However, there are limitations such as high market prices, dividend volatility, and occasional non-payments leading to the issuance of bonus shares by commercial banks.
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Share Price Volatility, Corporate Dividend, Dividend Yield, Hausman Test and Legal Impacts
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(1) Muhammad Tahir
Associate Professor, Faculty of Law, Dadabhoy Institute of Higher Education (Dihe), Karachi, Sindh, Pakistan.
(2) Shaista Azmat Ali
University of Karachi, Sindh, Pakistan.
(3) Sehrish Chiragh
University of Karachi, Sindh, Pakistan.
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Cite this article
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APA : Tahir, M., Ali, S. A., & Chiragh, S. (2023). Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan. Global Legal Studies Review, VIII(I), 44-53. https://doi.org/10.31703/glsr.2023(VIII-I).05
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CHICAGO : Tahir, Muhammad, Shaista Azmat Ali, and Sehrish Chiragh. 2023. "Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan." Global Legal Studies Review, VIII (I): 44-53 doi: 10.31703/glsr.2023(VIII-I).05
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HARVARD : TAHIR, M., ALI, S. A. & CHIRAGH, S. 2023. Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan. Global Legal Studies Review, VIII, 44-53.
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MHRA : Tahir, Muhammad, Shaista Azmat Ali, and Sehrish Chiragh. 2023. "Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan." Global Legal Studies Review, VIII: 44-53
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MLA : Tahir, Muhammad, Shaista Azmat Ali, and Sehrish Chiragh. "Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan." Global Legal Studies Review, VIII.I (2023): 44-53 Print.
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OXFORD : Tahir, Muhammad, Ali, Shaista Azmat, and Chiragh, Sehrish (2023), "Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan", Global Legal Studies Review, VIII (I), 44-53
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TURABIAN : Tahir, Muhammad, Shaista Azmat Ali, and Sehrish Chiragh. "Legal Impact of Distribution of Dividend Policy on Share Price in Pakistan." Global Legal Studies Review VIII, no. I (2023): 44-53. https://doi.org/10.31703/glsr.2023(VIII-I).05