Abstract:
The objective of this study was to determine moderating effect of corporate governance
between the relationship of dividend policy and firm performance in Pakistan's cement sector,
which is listed on the PSX.
Methodology and Design
The research was quantitative and employed a longitudinal research design. The PSX annual
reports of Pakistan's listed cement companies from 2018 to 2022 were the source of all the
information. Random effect and fixed effect models were used to run the panel data regression
model in stages. To assess the validity of the study hypothesis, both descriptive and regression
models were used.
Findings
The findings of the study have mixed results as the data analysis showed that dividend policy
(dividend capacity, dividend payout ratio & FCFs) has a significant positive effect on firm
performance (ROE & ROA) of cement industry in Pakistan. In the same view, board size as a
moderating variable also has a significant positive effect on dividend policy and firm
performance while leverage has an insignificant positive effect on board size.
Limitation and Recommendation
Future research might concentrate on developed nations as this study was restricted to Pakistan,
a developing nation. Research on the mediating influence may be done in the future. Last but
not least, while this study concentrated on longitudinal research design, future research may
concentrate on combining qualitative and quantitative research methods
