IMPACT OF DIVIDEND POLICY ON MARKET PRICES OF SHARES: EVIDENCE FROM PAKISTAN
Keywords:
Dividend Policy, Stock Prices, Karachi Stock Exchange, Non-Financial FirmsAbstract
This research intends to observe the impact of dividend policy on market prices of firms’ stocks of the nonfinancial sectors of Pakistan during the time period from 2006 to 2015, after controlling some other variables. Data is taken from sixty seven non-financial firms listed in KSE (PSX). The outcome of fixed effect Regression model exposed that there is the significant negative impact of dividend yield and significant positive impact of dividend payout on stocks market prices. The result of control variables showed that growth in assets, growth in earnings, growth in sales and size have a significant positive impact on stock market prices while liquidity, leverage and profit after tax have no significant impact on stock market prices during our study period. Therefore, all outcomes of this research signify that the dividend policy has a significant impact on market prices of stocks in Pakistan.
References
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Tepper, B. J., Duffy, M. K., & Breaux-Soignet, D. M. (2012). Abusive
supervision as a political activity: Distinguishing impulsive and
strategic expressions of downward hostility. In Politics in
organizations (pp. 225-246). Routledge.
Tepper, B. J., Moss, S. E., & Duffy, M. K. (2011). Predictors of abusive
supervision: Supervisor perceptions of deep-level dissimilarity,relationship conflict, and subordinate performance. Academy of
Management Journal, 54(2), 279-294.
Tepper, B. J. (2007). Abusive supervision in work organizations: Review,
synthesis, and research agenda. Journal of Management, 33(3), 261-289.
Tepper, B. J., Duffy, M. K., Henle, C. A., & Lambert, L. S. (2006).
Procedural injustice, victim precipitation, and abusive
supervision. Personnel Psychology, 59(1), 101-123.
Tepper, B. J. (2000). Consequences of abusive supervision. Academy of
Management Journal, 43(2), 178-190.
Walter, F., Lam, C. K., Van Der Vegt, G. S., Huang, X., & Miao, Q. (2015).
Abusive supervision and subordinate performance:
Instrumentality considerations in the emergence and
consequences of abusive supervision. Journal of Applied Psychology, 100(4), 1056.
Weber, M. (1947). The theory of economic and social organization. Trans. AM
Henderson and Talcott Parsons. New York: Oxford University Press.
moderator of the relationship between procedural justice,
interactional justice perceived organizational support, and
supervisory trust. Journal of Applied Psychology, 88(2), 295–305.
Aryee, S., Chen, Z. X., Sun, L. Y., & Debrah, Y. A. (2007). Antecedents
and outcomes of abusive supervision: Test of a trickle-down
model. Journal of Applied Psychology, 92(1), 191-201.
Aryee, S., Sun, L. Y., Chen, Z. X. G., & Debrah, Y. A. (2008). Abusive
supervision and Contextual performance: The mediating role of
emotional exhaustion and the moderating role of work unit
structure. Management and Organization Review, 4(3), 393-411.
Ashforth, B. (1994). Petty tyranny in organizations. Human relations, 47(7), 755-778.
Burton, J. P., & Hoobler, J. M. (2011). Aggressive reactions to abusive
supervision: The role of interactional justice and narcissism.
Scandinavian Journal of Psychology, 52(4), 389-398.
Chan, M. E., & McAllister, D. J. (2014). Abusive supervision through the
lens of employee state paranoia. Academy of Management Review, 39(1), 44-66.
Davis, M. D., & Stephan, W. G. (2011). Electromyographic analyses of
responses to intergroup threat. Journal of Applied Social Psychology, 41(1), 196-218.
Duckitt, J. (2001). A dual-process cognitive-motivational theory of
ideology and prejudice. In Advances in experimental social
psychology (Vol. 33, pp. 41-113). Academic Press.
Elias, R. (1986). The politics of victimization: Victims, victimology, and
human rights. OUP Catalogue.
Esses, V. M., Jackson, L. M., & Armstrong, T. L. (1998). Intergroup
competition and attitudes toward immigrants and immigration:
An instrumental model of group conflict. Journal of Social Issues, 54(4), 699-724.
Jensen, J. M., Patel, P. C., & Raver, J. L. (2014). Is it better to be average?
High and low performance as predictors of employee
victimization. Journal of Applied Psychology, 99(2), 296.
Keashly, L. (1997). Emotional abuse in the workplace: Conceptual and
empirical issues. Journal of emotional abuse, 1(1), 85-117.
Khan, A. K., Moss, S., Quratulain, S., & Hameed, I. (2016). When and
how subordinate performance leads to abusive supervision: A
social dominance perspective. Journal of Management, 0149206316653930.
Khandwalla, P. N. (1977). The design of organizations. New York:
Harcourt, Brace, Jovanovich.
Kim, E., & Glomb, T. M. (2014). Victimization of high performers: The
roles of envy and workgroup identification. Journal of Applied Psychology, 99(4), 619.
Liden, R. C., Wayne, S. J., & Stilwell, D. (1993). A longitudinal study on
the early development of leader-member exchanges. Journal of
Applied Psychology, 78(4), 662.
Mackey, J. D., Frieder, R. E., Brees, J. R., & Martinko, M. J. (2017).
Abusive supervision: A meta-analysis and empirical
review. Journal of Management, 43(6), 1940-1965.
Martinko, M. J., Harvey, P., Brees, J. R., & Mackey, J. (2013). A review
of abusive supervision research. Journal of Organizational
Behavior, 34(1), S120-S137.
Martinko, M. J., Harvey, P., Sikora, D., & Douglas, S. C. (2011).
Perceptions of abusive supervision: The role of subordinates’
attribution styles. The Leadership Quarterly, 22(4), 751-764.
Opotow, S. (1990). Moral exclusion and injustice: An introduction.
Journal of Social Issues, 46(1), 1-20.
Pratto, F., Sidanius, J., & Levin, S. (2006). Social dominance theory and
the dynamics of intergroup relations: Taking stock and
looking forward. European Review of Social Psychology, 17(1), 271-320.
Pratto, F., Stallworth, L. M., Sidanius, J., & Siers, B. (1997). The gender
gap in occupational role attainment: a social dominance approach.
Journal of Personality and Social Psychology, 72(1), 37.
Pratto, F., Sidanius, J., Stallworth, L. M., & Malle, B. F. (1994). Social
dominance orientation: A personality variable predicting social
and political attitudes. Journal of Personality and Social
Psychology, 67(4), 741.
Salin, D. (2003). Ways of explaining workplace bullying: A review of
enabling, motivating and precipitating structures and processes
in the work environment. Human Relations, 56(10), 1213-1232.
Shao, P., Resick, C. J., & Hargis, M. B. (2011). Helping and harming
others in the workplace: The roles of personal values and abusive
supervision. Human Relations, 64(8), 1051-1078.
Sidanius, J., Pratto, F., Van Laar, C., & Levin, S. (2004). Social dominance
theory: Its agenda and method. Political Psychology, 25(6), 845-880.
Slevin, D. P., & Covin, J. G. (1997). Strategy formation patterns,
performance, and the significance of context. Journal of
Management, 23(2), 189-209.
Sutton, J. (2007). Healing the Hurt Within 3rd Edition: Understand selfinjury
and self-harm and heal the emotional wounds. Hachette UK.
Tedeschi, J. T., & Felson, R. B. (1994). Violence, aggression, and coercive
actions. American Psychological Association.
Tepper, B. J., Simon, L., & Park, H. M. (2017). Abusive supervision.
Annual Review of Organizational Psychology and Organizational Behavior, 4, 123-152.
Tepper, B. J., Duffy, M. K., & Breaux-Soignet, D. M. (2012). Abusive
supervision as a political activity: Distinguishing impulsive and
strategic expressions of downward hostility. In Politics in
organizations (pp. 225-246). Routledge.
Tepper, B. J., Moss, S. E., & Duffy, M. K. (2011). Predictors of abusive
supervision: Supervisor perceptions of deep-level dissimilarity,relationship conflict, and subordinate performance. Academy of
Management Journal, 54(2), 279-294.
Tepper, B. J. (2007). Abusive supervision in work organizations: Review,
synthesis, and research agenda. Journal of Management, 33(3), 261-289.
Tepper, B. J., Duffy, M. K., Henle, C. A., & Lambert, L. S. (2006).
Procedural injustice, victim precipitation, and abusive
supervision. Personnel Psychology, 59(1), 101-123.
Tepper, B. J. (2000). Consequences of abusive supervision. Academy of
Management Journal, 43(2), 178-190.
Walter, F., Lam, C. K., Van Der Vegt, G. S., Huang, X., & Miao, Q. (2015).
Abusive supervision and subordinate performance:
Instrumentality considerations in the emergence and
consequences of abusive supervision. Journal of Applied Psychology, 100(4), 1056.
Weber, M. (1947). The theory of economic and social organization. Trans. AM
Henderson and Talcott Parsons. New York: Oxford University Press.
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Published
2017-12-15
How to Cite
Memon, N. A., Channa, D. N., & Khoso, D. I. (2017). IMPACT OF DIVIDEND POLICY ON MARKET PRICES OF SHARES: EVIDENCE FROM PAKISTAN. Journal of Business Strategies, 11(2), 57–72. Retrieved from https://greenwichjournals.com/index.php/businessstudies/article/view/377
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