Effect of Dividend Policy on Share Holders Wealth: A Study of Sugar Industry in Pakistan
The present paper focuses on the impact of dividend policy on shareholder’s wealth in sugar industries of Pakistan. For this study we have selected the sample of 33 listed companies of sugar industry out of 36 at Karachi Stock Exchange from the food and producers sector. The data is collected for the period of 6 years from the year 2006 to 2011. For this study descriptive statistics and multiple regression analysis is used by taking dividend per share (DPS), earnings per share(EPS), Lagged Market Price Ratio (LMPR), Lagged Price Earnings Ratio (LPER) Price Earnings Ratio (PER) Retained Earnings Ratio (RER) as independent variables and market price per share (MPS) as dependent variable. The R2 shows that 99% variations in MPS are due to the explanatory variables. The p value of the f statistic shows that all the regressors have jointly significant relationship with dependent variable (MPS).
