Financing Decision, Ownership Structure and Dividend Policy (An Empirical Analysis of the Banking Sector of Pakistan)

Abstract

The payment of dividend is an exciting attraction for a company investor. Dividend is mostly paid out of the net earnings, and when the banks get levered, it may affect the disbursement of the dividend due to the deduction of interest from net income. Empirically, it is still to be explored that the inducement of leverage may affect the dividend payment, which may affect the ownership structure of the commercial banks of Pakistan.