Agency Problems, Product Market Competition and Dividend Policies in Pakistan
- *Corresponding Author:
- Muhammad Rizwan Ullah
Department of Banking and Finance
Government College University Faisalabad, Pakistan
Tel: +92-41- 9200886
E-mail: [email protected]
Received date: April 14, 2016; Accepted date: August 01, 2016; Published date: August 10, 2016
Citation: Ullah MR, Tahir SH, Azam M, Ali A, Shehzadi I (2016) Agency Problems, Product Market Competition and Dividend Policies in Pakistan. Arabian J Bus Manag Review S2:006.
Copyright: © 2016 Ullah MR, et a. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The present study investigates the influence of product market competition on the dividend policies of the listed companies at KSE 100 index in Pakistan. It identify whether product market competition mitigates agency problems between controlling shareholders and minority shareholders. In particular, we examine firm dividend policies in competitive market, the study use three statistical measures for the analysis of 30 textile firms. The result shows that the product market competition have no significant impact on dividend policies of Pakistan. This study recommends that the product market competition can be an effective tool that can force the managers to give cash to shareholders.