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Journals / International Econometric Review / 2022 / Cilt: 14 - Sayı: 4

REVIEWING THE RELATIONSHIP BETWEEN DIVIDEND AND FREE CASH FLOW OF NON-FINANCIAL FIRMS OF KSE 100

Saad Ullah MUGHAL
Muhammad MUDDASİR
Pages
107–123
Publication Date
2023-04-15
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

We can conclude that, firstly, there is a strong relationship between long-term and short-term investments, and that when it comes to the payment of dividends, the firms are different depending upon their size.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this research, we have worked toward two main objectives.
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Key Findings & Data:For this research, the sample size we took was all the listed companies in the KSE 100 Index of the Pakistan Stock Exchange; further, we divided them into financial and non-financial firms and did our testing only on the non-financial firms (64 companies in total) between the time period starting from 2009 to 2018.
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Conclusion & Impact:We can conclude that, firstly, there is a strong relationship between long-term and short-term investments, and that when it comes to the payment of dividends, the firms are different depending upon their size.
🔬Design:Modeling & Simulation
📍Scope:2009 Verileri
⚙️Variables:Free Cash Flow · Dividend · KSE-100

Abstract

In this research, we have worked toward two main objectives. Firstly, we have worked upon the measures of long-term and short-term investments, and lastly, we have checked whether the dividend payout of the small fifty and big fifty firms is indifferent or not regarding free cash flow. For this research, the sample size we took was all the listed companies in the KSE 100 Index of the Pakistan Stock Exchange; further, we divided them into financial and non-financial firms and did our testing only on the non-financial firms (64 companies in total) between the time period starting from 2009 to 2018. We developed four regression models in total to test our arguments and bifurcated our models into two series. In our first series, we checked the random effect, and in the subsequent series, we checked the fixed effect.In the end, our results came out as expected, and we have been able to concur with our defined objectives. We can conclude that, firstly, there is a strong relationship between long-term and short-term investments, and that when it comes to the payment of dividends, the firms are different depending upon their size.

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Cite This Article

MUGHAL, S. U., MUDDASİR, M. (2023). REVIEWING THE RELATIONSHIP BETWEEN DIVIDEND AND FREE CASH FLOW OF NON-FINANCIAL FIRMS OF KSE 100. International Econometric Review, Cilt: 14 - Sayı: 4, 107–123. https://ajindex.com/articles/883452

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