Dividend Policy and its Impact on Market Price: An Empirical Study of Chemical Sector

Authors

  • Azeem Akhtar Bhatti Assistant Professor, Department of Commerce, Sindh University Laar Campus Badin, Sindh, Pakistan
  • Abdul Qadir Patoli Assistant Professor, Department of Commerce, Sindh University Laar Campus Badin, Sindh, Pakistan
  • Tahal Kumar Assistant Professor, Department of Business Administration, Sindh University Laar Campus Badin, Sindh, Pakistan

DOI:

https://doi.org/10.47205/jdss.2023(4-II)28

Keywords:

Chemical Sectors, Dividend, Impact, Panel, Stock Price

Abstract

This study investigates the dividend policy in the chemical industries and how it affects market prices. From 2013 to 2022, information was gathered from sixteen out of the twentysix companies in Pakistan's chemical sectors. Panel data have been examined for fixed effect models (categories of panel model). Software called Eviews was used for analysis. On the dataset, the Levin li chu, Hauseman, Wald, VIF, Tolerance, Durban Watson, Normality and Homosedacity tests were run. Except for Profit after Tax, all explanatory factors are shown to be significant. Because dividend policy has an impact on share prices, it means that dividend policy proxies are significant in all financial decision - making. Firms must thus develop a dividend policy based on the current market price. This research represents the natural tendency of stock purchasers to be price concerned. An empirical analysis of these industries in Pakistan demonstrates unequivocally that the idea of dividend relevance is widely accepted.

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Published

2023-04-01

Details

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    PDF Downloads: 201

How to Cite

Bhatti, A. A., Patoli, A. Q., & Kumar, T. (2023). Dividend Policy and its Impact on Market Price: An Empirical Study of Chemical Sector. Journal of Development and Social Sciences, 4(2), 316–326. https://doi.org/10.47205/jdss.2023(4-II)28