Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy

Yasir Khan; Liaqat Ali; Saima Batool; Azmat Ali

doi:doi:10.11648/j.ajomis.20170204.12

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Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy

Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali

Published in American Journal of Operations Management and Information Systems (Volume 2, Issue 4)

Received: 20 August 2017 Accepted: 5 September 2017 Published: 26 October 2017

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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.

Published in	American Journal of Operations Management and Information Systems (Volume 2, Issue 4)
DOI	10.11648/j.ajomis.20170204.12
Page(s)	92-96
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2017. Published by Science Publishing Group

Keywords

Growth, Profitability, Dividend Policy, Commercial Banks, Fixed Effect Etc

References

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APA Style

Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali. (2017). Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. American Journal of Operations Management and Information Systems, 2(4), 92-96. https://doi.org/10.11648/j.ajomis.20170204.12

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ACS Style

Yasir Khan; Liaqat Ali; Saima Batool; Azmat Ali. Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. Am. J. Oper. Manag. Inf. Syst. 2017, 2(4), 92-96. doi: 10.11648/j.ajomis.20170204.12

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AMA Style

Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali. Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. Am J Oper Manag Inf Syst. 2017;2(4):92-96. doi: 10.11648/j.ajomis.20170204.12

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@article{10.11648/j.ajomis.20170204.12,
  author = {Yasir Khan and Liaqat Ali and Saima Batool and Azmat Ali},
  title = {Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {2},
  number = {4},
  pages = {92-96},
  doi = {10.11648/j.ajomis.20170204.12},
  url = {https://doi.org/10.11648/j.ajomis.20170204.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20170204.12},
  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.},
 year = {2017}
}

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TY  - JOUR
T1  - Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy
AU  - Yasir Khan
AU  - Liaqat Ali
AU  - Saima Batool
AU  - Azmat Ali
Y1  - 2017/10/26
PY  - 2017
N1  - https://doi.org/10.11648/j.ajomis.20170204.12
DO  - 10.11648/j.ajomis.20170204.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 92
EP  - 96
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20170204.12
AB  - 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.
VL  - 2
IS  - 4
ER  -

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Author Information

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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APA Style

Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali. (2017). Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. American Journal of Operations Management and Information Systems, 2(4), 92-96. https://doi.org/10.11648/j.ajomis.20170204.12

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ACS Style

Yasir Khan; Liaqat Ali; Saima Batool; Azmat Ali. Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. Am. J. Oper. Manag. Inf. Syst. 2017, 2(4), 92-96. doi: 10.11648/j.ajomis.20170204.12

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AMA Style

Yasir Khan, Liaqat Ali, Saima Batool, Azmat Ali. Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy. Am J Oper Manag Inf Syst. 2017;2(4):92-96. doi: 10.11648/j.ajomis.20170204.12

Copy | Download

@article{10.11648/j.ajomis.20170204.12,
  author = {Yasir Khan and Liaqat Ali and Saima Batool and Azmat Ali},
  title = {Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy},
  journal = {American Journal of Operations Management and Information Systems},
  volume = {2},
  number = {4},
  pages = {92-96},
  doi = {10.11648/j.ajomis.20170204.12},
  url = {https://doi.org/10.11648/j.ajomis.20170204.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajomis.20170204.12},
  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.},
 year = {2017}
}

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TY  - JOUR
T1  - Growth & Profitability of Private Commercial Banks: Major Indicator of Its Dividend Policy
AU  - Yasir Khan
AU  - Liaqat Ali
AU  - Saima Batool
AU  - Azmat Ali
Y1  - 2017/10/26
PY  - 2017
N1  - https://doi.org/10.11648/j.ajomis.20170204.12
DO  - 10.11648/j.ajomis.20170204.12
T2  - American Journal of Operations Management and Information Systems
JF  - American Journal of Operations Management and Information Systems
JO  - American Journal of Operations Management and Information Systems
SP  - 92
EP  - 96
PB  - Science Publishing Group
SN  - 2578-8310
UR  - https://doi.org/10.11648/j.ajomis.20170204.12
AB  - 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.
VL  - 2
IS  - 4
ER  -

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