African Journal of
Business Management

  • Abbreviation: Afr. J. Bus. Manage.
  • Language: English
  • ISSN: 1993-8233
  • DOI: 10.5897/AJBM
  • Start Year: 2007
  • Published Articles: 4193

Full Length Research Paper

Patterns of capital structure and dividend policy in Pakistani corporate sector and their impact on organization performance

  Ahmed Imran Hunjra*, Muhammad Bilal, Haroon Shafi, Ikram Ullah and Kashif-Ur-Rehman    
  Iqra University Islamabad, Pakistan.
Email: [email protected]

  •  Accepted: 05 August 2011
  •  Published: 09 November 2011

Abstract

 

The purpose of this study is to determine the patterns of capital structure decisions and dividend policy as well as their level of application in Pakistani corporate sector and also to check the impact of capital structure and dividend policy on organization performance. A total of ninety one questionnaires were distributed in different companies but seventy three filled were received and sixty one were processed for the analysis. The potential respondents were finance executives and financial analysts of the companies. The study concludes that capital structure decisions are being properly practiced while dividend policy is a major concern in most of the organizations. It is also concluded that there is a significant and positive relationship between capital structure decision, dividend policy and organization performance. 

 

Key words: Capital structure decisions, dividend policy, organization performance corporate sector, finance executives, analysts.