An Assessment of Impact of Financial Performance and Leverage on Dividend Policy of Pakistan Chemical and Pharmaceutical Industries

Dividend declaration represents the profitability of firms. Dividend declaration decision was made by the board of directors at annul general meeting to ensure the live long existence of a firm. The current study was carried to examined the impact of leverage and profitability on dividend payout policy of firms taken from two industries (Chemical and Pharmaceutical). For purpose, 34 listed firms were taken from the two industries for a period of (2003-2010). The data were in penal form so, ordinary least square method were used. The results revels that profitability positively affects dividend payouts while leverage have no significant affect on firm dividend payouts. Further, the control variable log of total assets also positively affects the dividend payout of the two industries