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Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy
American Journal of Operations Management and Information Systems
Volume 2, Issue 4, November 2017, Pages: 92-96
Received: Aug. 20, 2017; Accepted: Sep. 5, 2017; Published: Oct. 26, 2017
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Authors
Yasir Khan, Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar, Pakistan
Liaqat Ali, Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar, Pakistan
Saima Batool, Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar, Pakistan
Azmat Ali, Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar, Pakistan
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Abstract
The study was conducted to check whether the growth and profitability is the major indicator of bank’s best dividend policy. The research was conducted in the banking sector of Pakistan. The commercial banks working in Pakistan was taken as a sample of the study. On the basis of the dividend payment, 20 banks were selected for the data collection. The data was collected from 2008 to 2014. Bank size and leverage was taken as control variables. As per the results of chow test’s, fixed effect in case of profitability & pooled OLS in case of growth is appropriate for the data analysis. White’s test shows that the data is heteroskedastic so the final results were analyzed by fixed effect model with robust and no issue of heteroskedasticity in growth data. As per the results of fixed effect model; 1) DPO has negative and insignificant effects on bank dividend policy (null accepted); 2) Firm size has positive and significant effects on bank dividend policy; 3) Leverage has negative and significant effects on dividend policy; As per the results of pooled OLS for growth; 1) DPO has positive and significant effects on bank dividend policy (Alternate accepted); 2) Firm size has positive and significant effects on bank dividend policy; 3) Leverage has negative and insignificant effects on dividend policy.
Keywords
Growth, Profitability, Dividend Policy, Commercial Banks, Fixed Effect Etc
To cite this article
Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali, Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy, American Journal of Operations Management and Information Systems. Vol. 2, No. 4, 2017, pp. 92-96. doi: 10.11648/j.ajomis.20170204.12
Copyright
Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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