The study aims at investigating the relationship between dividend payout and the stock price of listed companies in Karachi Stock Exchange and to establish the extent of the relationship between them. The data were collected from Karachi Stock Exchange from 2003 to 2008. Five firms from textile industry were selected purposively. Stock price was dependent variable while the independent variable was dividend payout ratio. The size of firm, earning volatility and growth were selected as controlled variables. Multiple regression model was employed to explore the relationship of dependent with independent variables. Results showed that overall models were good fit showed by coefficient of determination values. Dividend payout ratio was significantly affecting the stock price. Other variables sowed mixed results in some models were found significant.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
