Abstract:
The main purpose of the study is to explore the factors that affect the dividend Payout Policy of sharia compliant and Non-Shariah non-financial companies. In addition, to compare both sharia compliant and Non-Shariah non-financial firm dividend policy determinants. Five factors have been selected to check the impact on the dividend payout of sharia compliant and Non -Shariah non-financial manufacturing firms in Pakistan. The selected variables are free Cashflow, profitability, size, investment opportunity and leverage. The data has been taken of 231 firms out of which 52 are Shariah Non-Financial Manufacturing firms and 181 are Non-shariah non financial manufacturing firms from PSX (Pakistan stock exchange) for the period of 5 years ranging from 2011 to 2015. Panel data regression has been employed and the results shows that all variables have significant relationship with dividend Payout in both sharia compliant and Non -Shariah non-financial manufacturing firms
