IMPACT OF DIVIDEND POLICY ON SHARE PERFORMANCE: A CASE OF PHARMACEUTICAL INDUSTRY OF PAKISTAN

Abstract

Purpose - Dividend strategy is a highly discussed question in the arena of business among researchers that caused share price fluctuation. But discover the determinants of share turnover and share volume. Therefore, this research i attempt to investigate the influence of dividend strategy (dividend yield, dividend per stock & payout ratio) on share performance (share price, share turnover & share volume). Methodology & Design - The data of five pharmaceutical companies have been gathered fiom the period of 2008 through 2018. The most fundamental regression technique has been applied to analyze collected data. no one article reviewed attempt to is an Findings - It is figure out from the study that DPR is statistically significant and positively effect SP & SV, whereas the same variable is statistically insignificant with SP. DPS & DY proved statistically insignificant association with ST & SV. Furthermore, DPS is statistically significant & positively influence to SP and DY is statistically significant but negatively influence to SP. Recommendations - Company should issue warrants to employees, so they will work devotedly to boost the earning that consequently rise DPS & DPR. And ensure the stable dividend policy.