Risk Assessment & Investment Decisions in Relation to Dividend Payout in Textile Sector of Pakistan

Abstract

The dividend effects for investment decisions are discussed in this study. I have gathered data in my research from I 0 various Textile companies listed on Pakistan stock exchanges. This data gives me information on these companies' dividends, share price, and market position. I then use EViews to analyze these data after data collection and use different tests on them. This research shows a connection between parameters in my study. The study investigated the impact of the dividend on the business model of each company and the company's share price and helps the client make judgments at the time of their investment. It significantly reduces risk exposure and offers shareholders rational potential profits. The primary goal of this study is to detennines the connection between risk management policies and the profitability ratios that affect the dividend payment policy in Pakistan's textile industry. The concept of Risk management is not novel, it has remained in circulation ever since time. When businesses have taken precautionary measures against the aversion of risk. This helps the companies to increase their profits and subsequently give better profits. It also helps in maintaining a ratio that is attractive to the stakeholders. We have done multiple statistical tests. The results are detailed in section 4 of the report. On our sample data of 10 textile companies from 20 16 to 2020, we assess the regression analysis. The impact of corporate governance on dividend payment policy is calculated using accounting measures especially with the dividends payouts of the companies. We have discussed that all in the detailed report. Page 5