Do Growth Opportunities Influence the Relationship of Capital Structure, Dividend Policy and Ownership Structure with Firm Value: Empirical Evidence of KSE?Muhammad Sualehkhattak* and CH Mazher Hussain
Faculty of Management Sciences, International Islamic University, Islamabad, Pakistan
- *Corresponding Author:
- Muhammad Sualehkhattak
Faculty of Management Sciences
International Islamic University
Tel: +92 51 9257988
E-mail: [email protected]
Received Date: December 26, 2016; Accepted Date: January 30, 2017; Published Date: February 06, 2017
Citation: Sualehkhattak M, Mazher Hussain CH (2017) Do Growth Opportunities Influence the Relationship of Capital Structure, Dividend Policy and Ownership Structure with Firm Value: Empirical Evidence of KSE? J Account Mark 6: 216. doi:10.4172/2168-9601.1000216
Copyright: © 2017 Sualehkhattak M, et al. 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 purpose of the study is to explore empirically the association among leverage, dividend payout ownership structure and firm value and influence of growth opportunities on this relationship. To obtain the correct empirical results this study applied the correlation analysis technique, ordinary least square (OLS) regression analysis on 148 non-financial companies listed on Karachi Stock Exchange (KSE), for the period of Five years (2011-2015). Using t-test and panel data regressions. The study found significant positive relationship between leverage, and firm value, and ownership concentration and firm value while insignificant association between dividend payout and firm value. The study further found that the interaction term of leverage and growth opportunities is insignificant, the interactive term of dividend payout and growth opportunities is also insignificant, and the interaction of ownership concentration and growth opportunities is also insignificant. So in the presence of growth opportunities the relationship of leverage, dividend payout and ownership structure with firm value does not affect. So growth opportunities do not play a moderating role.