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BEHAVIORAL PERSPECTIVES AMONG DIVIDEND POLICY AND ITS DETERMINANTS AND FIRM'S FINANCIAL PERFORMANCE: A CB-SEM APPROACH |
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| รหัสดีโอไอ | |
| Creator | Sarfaraz Ahmed Bhutto, Hassan Jawad Soomro, Saifullah Shaikh, Hussain Amar, Qamar Abbas Mang |
| Title | BEHAVIORAL PERSPECTIVES AMONG DIVIDEND POLICY AND ITS DETERMINANTS AND FIRM'S FINANCIAL PERFORMANCE: A CB-SEM APPROACH |
| Contributor | - |
| Publisher | TuEngr Group |
| Publication Year | 2563 |
| Journal Title | International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies |
| Journal Vol. | 11 |
| Journal No. | 13 |
| Page no. | 11A13K: 1-14 |
| Keyword | Effective dividend policy, Company's financial performance, SEM analysis, Stakeholders' interests, Structural Equation Modeling (SEM), Chief financial officer (CFO), Corporate finance, Anticipated level of future earnings, Patterns of past of dividends, Financial uncertainty, Manufacturing firms. |
| URL Website | http://TuEngr.com/Vol11_13.html |
| Website title | ITJEMAST V11(13) 2020 @ TuEngr.com |
| ISSN | 2228-9860 |
| Abstract | Dividend policy is the prime concern for every shareholder. Financial managers formulate the necessary dividend policy that increases shareholders' affinity towards the company. This study examines the relationship between determinants of dividend policy (anticipated level of future earnings, stakeholders' interest, the pattern of past dividends, corporate social responsibility (CSR), and uncertainty) and financial performance. Moreover, this study empirically investigates the untapped mediating effect of dividend policy between determinants of dividend policy and financial performance. Financial managers are highly integrated into formulating dividend policy, the present study indulged with the behavioral responses taken from Chief financial officers (CFOs) of listed manufacturing firms of Pakistan. Questionnaires are used as a study tool. The population frame includes CFOs of different financial and non-financial sectors. From the Covariance-based Structural Equation Modelling (CB-SEM) analysis, results show a significant relationship between the determinants of dividend policy and financial performance. Further, dividend policy mediates the relationship between its determinants (except uncertainty and CSR) and the firm's financial performance. The practical implication would be recommended for financial managers and other corporate policymakers. |
