Dividend policy and shareholders’ wealth. A comparative analysis of Shariah-compliant and noncompliant nonfinancial firms in Pakistan

IF 2.5 Q2 BUSINESS, FINANCE

Journal of Islamic Accounting and Business Research Pub Date : 2023-12-25 DOI:10.1108/jiabr-01-2023-0007

Saeed Akbar, Shehzad Khan, Z. Haq, Muhammad Yusuf Amin

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引用次数: 0

Abstract

Purpose The purpose of this study is to comparatively analyze the effect of dividend policy on shareholders’ wealth in Shariah-compliant (SC) and noncompliant (NC) nonfinancial firms in Pakistan. Design/methodology/approach All the nonfinancial firms listed on the Pakistan stock exchange have been taken as a sample for 2016–2021. The Karachi Meezan index screening criteria were applied to screen SC firms. Based on the BPLM and Hausman test results, the authors used the fixed-effect and pooled OLS model for SC and NC firms, respectively. The F-test was used to compare the effect of each dividend policy variable on shareholders’ wealth for both firm types. Findings The findings reveal that the dividend policy does affect the shareholders’ wealth in both firm types. Dividend per share (DPS), dividend yield (DY) and earnings per share significantly affect the shareholders’ wealth in SC firms. For NC firms, the dividend payout, DPS and DY are critical. Moreover, the F-test results show that the DPS, DY and leverage effect on the shareholders’ wealth significantly differ for both firm types. Research limitations/implications This study fills the research gap in the Pakistani context specifically as well as globally by providing important insights into the relationship between a firm’s dividend policy and shareholders’ wealth for SC and NC firms. In addition, this study comprehensively compares the results for both firm types, which is also lacking in the existing literature. Because this study is based in Pakistan, the generalizability of the results would be limited. Practical implications The findings of this study are helpful for the management of SC and NC firms in devising their dividend policies that can maximize their shareholders’ wealth. This study also provides guidance and knowledge to investors in choosing companies for their investments that can maximize their wealth. Originality/value To the best of the authors’ knowledge, this is the first study that analyzes the relationship between dividend policy and shareholders’ wealth for SC firms in Pakistan. It is also the first study that comprehensively compares the dividend policy relationship with shareholders’ wealth for SC and NC firms. In addition, using the F-test for joint hypotheses to compare the specific effect of each dividend policy variable is a methodological contribution of the study.

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股利政策与股东财富。巴基斯坦符合伊斯兰教法和不符合伊斯兰教法的非金融企业比较分析

本研究旨在比较分析巴基斯坦符合伊斯兰教法（SC）和不符合伊斯兰教法（NC）的非金融企业中股利政策对股东财富的影响。采用卡拉奇 Meezan 指数筛选标准筛选 SC 公司。根据 BPLM 和 Hausman 检验结果，作者对 SC 公司和 NC 公司分别使用了固定效应模型和集合 OLS 模型。研究结果表明，股利政策确实影响了两种类型公司的股东财富。每股股利（DPS）、股息率（DY）和每股收益对 SC 企业的股东财富有显著影响。对于 NC 企业，股利支付、DPS 和 DY 是关键因素。此外，F 检验结果表明，DPS、DY 和杠杆对两类公司股东财富的影响存在显著差异。研究局限/意义本研究填补了巴基斯坦以及全球范围内的研究空白，为研究 SC 公司和 NC 公司的股利政策与股东财富之间的关系提供了重要见解。此外，本研究全面比较了两种公司类型的结果，这也是现有文献所缺乏的。实际意义本研究的结果有助于 SC 和 NC 企业的管理层制定股利政策，从而最大限度地增加股东财富。据作者所知，这是第一项分析巴基斯坦 SC 公司股利政策与股东财富之间关系的研究。这也是第一项全面比较 SC 公司和 NC 公司股利政策与股东财富关系的研究。此外，使用联合假设的 F 检验来比较每个股利政策变量的具体影响，也是本研究在方法上的一个贡献。

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来源期刊

Journal of Islamic Accounting and Business Research BUSINESS, FINANCE-

CiteScore

4.80

自引率

22.70%

发文量

期刊介绍： The journal provides a dynamic forum for the advancement of accounting and business knowledge based on Shari’ah and Islamic activities that have an impact on the welfare of society. JIABR publishes articles on the interplay between Islamic business ethics, accounting, auditing and governance, in promoting accountability, socio-economic justice (adl) and everlasting success (al-falah). It seeks to inform, among others, current theoretical and empirical research and practice in Islamic accounting, auditing and corporate governance, management of Islamic organizations, accounting regulation and policy for Islamic institutions, Shari’ah auditing and corporate governance, financial and non-financial performance measurement and disclosure in Islamic institutions and organizations. All styles of research, theoretical and empirical, case studies, practice-based papers and research notes that are well written and falling within the journal''s scope, are generally welcomed by the journal. Scope/Coverage Development of accounting, auditing and corporate governance concepts based on Shari’ah Socio-political influence on accounting and auditing regulation and policy making for Islamic financial institutions and organizations Historical perspectives on Islamic accounting, auditing and financial management Critical analysis on issues and challenges on accounting disclosure and measurement, Shari’ah audit and corporate governance Controls and risks in Islamic organizations Financial and non-financial performance measurement and disclosure.