This paper posits that the relevance and indeed the assumptions of the dividends cost minimization model are restricted to those countries where shareholders rights are well protected. Alternatively, we propose an “investor power” hypothesis, which is closely akin to the La Porta et al....

The finance literature reports mixed results about the stock market reaction to dividend announcements. This study has tried to figure out that the heterogeneous stock market reaction to dividend announcements might be attributed to several firm-specific financial and non-financial factors. In...

In this paper, we use unique features of Pakistan's corporate environment to test information asymmetry and agency theories in explaining dividend smoothing behaviour of firms. Based on a sample of 150 non-financial firms listed at the Karachi Stock Exchange over the period of 1999 to 2012, we...

This paper analyses the impact of capital gains taxation (CGT) on dividend policy among firmsthat are listed at the Karachi Stock Exchange (now, Pakistan Stock Exchange or PSX). The reasonfor choosing the Pakistani market is the country’s idiosyncratic taxation system regarding dividendand...