Assessing Relationship Among Managerial Ownership, Leverage and Dividend Policy: Evidence From Pakistani Listed Firms in PSX 100 Index

Abstract

The aim of this study is to investigate the relationship between the managerial ownership, leverage and dividend Payout. The analysis is performed using GMM estimation on a sample of 40 non-financial listed Firms of Pakistan stock exchange for the period 2010–2016. The results show that there is negative association between Managerial ownership and Leverage, Positive association between Managerial ownership and Dividend payout. Leverage and Dividend payout has negative association. However, conflicting to expectations, managerial ownership is found to have positive impact on dividend. It means that companies with higher levels of managerial holdings are consciously choosing higher level of dividends. Keywords: Managerial Ownership, Leverage and Dividend Policy.