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Tax Shield and Its Impact on Corporate Dividend Policy: Evidence from Pakistani Stock Market

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DOI: 10.4236/ib.2013.54023    4,746 Downloads   7,993 Views   Citations

ABSTRACT

The problem: what is the taxation impact on dividend policy? While much optimal taxation research focuses on the economic effects of taxation, the purpose of this study is to add a new dimension by investigating the relationship between taxation and payout ratio and some other variables of dividend policy. These relations are tested using the data from financial statements of KSE listed companies. The results show that tax shield has no significant relation to the dividend payout ratio but mostly dividend policy is due to the size of the firm and its profitability.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

A. Hassan, M. Tanveer, M. Siddique and M. Mudasar, "Tax Shield and Its Impact on Corporate Dividend Policy: Evidence from Pakistani Stock Market," iBusiness, Vol. 5 No. 4, 2013, pp. 184-188. doi: 10.4236/ib.2013.54023.

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