Determinants

We provide here a study of Pakistani Firms registered on the Karachi Stock Markets. We have examined many determinant variables of the dividend policy to shed light on the dividend trends of firms in Pakistan as an emerging market. Our sample is comprised of 108 companies that have been listed on Karachi stock exchange during 1999-2004. The starting point in our research has been an observation that most of the Pakistani firms were reluctant in dividend payments. Mostly, firms either did not pay dividends or their dividend per share ranged between 0- 2.5 Rupees per share. We find that the non-financial sector has higher average dividend payout than the financial sector. Sector wise analysi