Impact of Corporate Social Responsibility on Dividend Payout Ratio

Abstract

This study has focused mainly on identifying the impact of corporate social responsibility on dividend payout ratio. In this study, environmental sustainability, environmental initiatives, human resources, and organizational culture have been used as independent variables. Whereas, dividend payout ratio has been considered as the dependent variable. However, cement industry of Pakistan has been the industry chosen for this study and employees working in cement industry of Pakistan have been finalized for data collection. Research instrument used within this study for the collection of data from respondents has been the structured questionnaire. Various statistical instruments (such as descriptive frequencies, reliability, correlation, regression, etc.) have been used primarily to identify the relationship between variables of this study. Results have been drawn through statistical instruments mentioned above, with the help of SPSS software. Based on the findings, it has been found that there exists a significant relationship between environmental sustainability, environmental initiatives, human resources, and organizational culture (independent variables) and dividend payout ratio (dependent variable) in cement industry of Pakistan. Conclusively, this study has proved that corporate social responsibility significantly impacts dividend payment ratio in cement industry of Pakistan