Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Effect of Dividend Paying Behavior and Board Size and Board Composition on Firms Performance: Evidence from Pakistan

Author(s): Ulfat Abbas, Muhammad Imran Farooq, Abdul Rauf Kashif, Sonia Hassan, Sadia Murtaza

This study examines the impact of corporate governance (board size and board composition), dividend-paying behavior on financial performances. We used panel data including a sample of 5 major sectors (cement, textile, board & paper, power, oil& gas) of Pakistan. The data of study covers from 2006 to 2016. We used board size and board composition as corporate governance, dividend-covering ratio used for measuring dividend-paying behavior, return on assets and return on equity is used for performance, which is dependent variable. For the data normality test, we measure descriptive statistics and correlation and for analyzing the main results, we used Estimated Generalized Least Square (EGLS) model. The findings suggest that there is significant positive relationship between dividend coverage and firm performance. The general reserve are also positive relationship with profitability which enhance the overall performance of non-financial sectors of Pakistan.

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