Corporate Governance and Dividend Policy:

An empirical analysis from Energy Sector of Pakistan

Submitted By

Hafiz Muhammad Saddique

PROVPIDE2019FMPHILEAF06

Supervised By

Dr. Farhat Mahmood

Department of Business Studies

Pakistan Institute of Development Economics, Islamabad

2021

i
Table of Content:
1. Introduction-----------------------------------------------------------------------------------1
1.1.Background--------------------------------------------------------------------------------1
1.2. Problem statement------------------------------------------------------------------------3
1.3. Research Gap------------------------------------------------------------------------------4
1.4.Objective of the study--------------------------------------------------------------------5
1.5.Research Question------------------------------------------------------------------------5
1.6.Significance of the study-----------------------------------------------------------------6
2. Literature review----------- --------------------------------------------------------------------- 7
2.1.Theoretical literature----------------------------------------------------------------------7
2.1.1. The signaling Theory--------------------------------------------------------7
2.1.2. Free Cash Flow Theory-----------------------------------------------------7
2.1.3. Free cash flow Hypothesis--------------------------------------------------8
2.1.4. Agent Theory----------------------------------------------------------------- 8
2.2.Empirical literature------------------------------------------------------------------------8
2.3.Pakistan literature-------------------------------------------------------------------------10
3. Data and Methodology---------------------------------------------------------------------------12
3.1.Data -----------------------------------------------------------------------------------------12
3.2.Research Design---------------------------------------------------------------------------12
3.2.1. Variable Description--------------------------------------------------------12
3.2.2. External Mechanism---------------------------------------------------------13
3.2.3. Firm’s Specific Factor-------------------------------------------------------13
3.2.4. Economic Factor-------------------------------------------------------------13
3.3.Methodology-------------------------------------------------------------------------------15
3.3.1. Model Specification ---------------------------------------------------------15
3.4.Econometric technique-------------------------------------------------------------------17
4. Conclusion -----------------------------------------------------------------------------------------18
5. References------------------------------------------------------------------------------------------19

ii
1. Introduction

1.1. Background

Corporate governance is a procedure to direct and control a company. The structure of corporate

governance includes distribution of responsibility and right among board members, managers,

shareholders and stakeholders in decision making (OECD principles of corporate governance,

2004). Therefore, it is one of the key elements of a company to attain success in management and

performance. Corporate governance is currently applied by many countries to control and direct

their companies and each country has their own corporate governance code. In Asia, corporate

governance started to be valued and paid attention since 1997 due to Asian Financial Crises1. The

crises became a starting point for Asian companies and policy makers to review the regulations of

corporate governance. Many weaknesses in Asian companies were exposed during the crises and

this forced and became a motivation to improve existing corporate governance or apply it in

companies after having an Asian Roundtable meeting with Organization for Economic Co-

operation and Development (OECD) in year 1999. Soon after that, the corporate governance

started to emerged and global standards of corporate governance are widely been implemented.

Through corporate governance, board of directors oversee corporate issues and ensure interests of

investors. In this regard, corporations make a payment which is usually a distribution of profits

that decided by the board of directors to its shareholders known as dividend (Lazonick &

O'Sullivan, 2000). Large countries such as United Kingdom, Canada ana Japan etc. usually earn

high profits and so pay high dividends out of their larger retained earnings. In other words,

1
The 1997–98 Asian financial crisis began in Thailand and then quickly spread to neighboring economies. It began
as a currency crisis when Bangkok unpegged the Thai baht from the U.S. dollar, setting off a series
of currency devaluations and massive flights of capital.

1
dividend policy deals with the payment of dividends in terms of amount and type of dividend need

to paid out while maintaining the company’s profit and take care of shareholder’s welfare (Koji,

Adhikary, & Tram, 2020)

Dividend policy influenced by the decision making of the boards of the company whether and how

much to pay. Moreover, the boards decide and set overall goal of the company i-e either to

maximize the shareholder’s wealth or to maximize the corporate wealth2 (Goergen & Renneboog,

2003). Dividend policy depends on the current and future situation of the company and also the

preferences of investors (Da et al,2004: Low 2002). Furthermore, it influences the perception of

the company by the investors and also the whole financial markets. Therefore, in order to balance

both shareholders and corporate wealth, board of a company play an important role in set up the

company dividend policy. As company’s dividend policy dictates the amount of dividends paid

out by the company to its shareholders and the frequency with which the dividends are paid out.

When a company makes a profit, they need to make a decision on what to do with it. They can

either retain the profits in the company (retained earnings on the balance sheet), or they can

distribute the money to shareholders in the form of dividends. The dividends and dividend policy

of a company are important factors that many investors consider when deciding what stocks to

invest in. Dividends can help investors earn a high return on their investment, and a company’s

dividend payment policy is a reflection of its financial performance.

As far as Pakistani market is concerned, it shows stable dividend payments in times of high growth

especially but they do not make dividend payments as much as they should. The explanation could

be that cost of assets is high in Pakistani markets. Furthermore, directors depend on interior funds

2
Stakeholder's welfare is a superior corporate goal over shareholder's wealth maximization. Shareholder's welfare looks after all the factors
responsible for its success whereas the wealth maximization as an objective overemphasizes the importance of money provider i.e. shareholders.

2
instead of the outside financing e.g. issuance of right shares and so on. This is the reason that only

35 percent of Pakistani firms deliver dividend and not really on regular premise (A. Javid & Iqbal,

2008) In Pakistan, it is seen that dividend payments are profoundly connected with the

administration issues such as agency problem (Maher & Andersson, 2000).

The primary focal point of this study will be to look at the connection between corporate

governance and dividend strategy by including economic variables.

1.2. Problem Statement

The relationship between dividend policy and agency costs 3 has been a subject of debate in

corporate finance literature for some time now. This association is based on the idea that

monitoring the firm and its management is a helpful tool in the reduction of agency conflicts and

in convincing the market that the managers are not in a position to abuse their power (Kouki &

Guizani, 2009). This relationship has been extensively tested in developed markets. For instance,

Al-Najjar and Hussainey (2009) examined this relationship on a sample of non-financial firms in

the UK for the period between 1991 and 2002. Other related studies which were conducted in the

US include Belden, Fister, and Knapp (2005) as well as Borokhovich, Brunarski, Harman and

Kehr (2005). Both studies focused on the existence of outside independent boards of directors and

agency costs. The findings of these studies, however, contradict with each other. Furthermore, it

is not clear whether dividend policy is an effective tool in mitigating agency conflicts in Pakistan

and specially in energy sector. Additionally, corporate governance variables as a tool in mitigating

agency conflicts has not been adequately investigated in the empirical literature. From this, it is

3
The principal-agent problem is a contention in needs between the owner of a resource and the individual to
whom control of the resource has been designated. The issue can happen in many situations, from the connection
between a customer and a legal advisor to the connection among investors and a CEO.

3
not clear whether strong corporate governance substitutes the role of dividends in reducing agency

conflicts. With these inconsistencies in literature and the general dearth of research, there is a need

to further explore the undocumented relationships between dividend policy, agency costs and

corporate governance in the Pakistan energy sector context - and this is the focus of this study.

1.3. Research Gap:

Many studies found how the corporate governance and dividend policies have been managed in

different sectors and industries to improve the value of the firm.

(Arslan & Zaman, 2015) investigated the weak relationship between asset structure and dividend

payout policy while no meaningful relationship exists between growth opportunities..

(Tahir, Sohail, Babar, & Oayyum, 2015) investigated the corporate governance and dividend

policy in the textile industry of Pakistan and fill this gap for the textile industry and concluded that

significant positive relationship was found between payout policy and stock value. (Batool & Javid)

same research has been done for the manufacturing sector of Pakistan, (Jinnah College of et al.,

2015) evidence for cement industry of Pakistan and (Ali Syed, Yang, Sarwar, & Ali, 2019) for

Cement industry of Pakistan with inclusion of cost of equity.

(Ullah, 2019) examined the relationship between financial leverage and dividend payout decision

of food companies registered on the Pakistan Stock Exchange, the relationship between current

ratio and dividend payout decision of food, the relationship of Profitability and dividend payout

decision of food companies, the relationship of growth and dividend payout decision of food

companies, the relationship of business risk and dividend payout decision of food companies

registered on the Pakistan Stock Exchange.

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Now according to the study about Pakistan two research gaps which will be analyzed in this

research. First from the research of last decade the energy sector has been neglected, so here the

gap of corporate governance and dividend policy analysis will be investigated in this research. The

importance of energy sector has been increased after the FDI of CPEC and one road one belt

investment by china, Energy sector is the major focus point of CPEC.

Secondly to study the dividend stability model with corporate governance mechanism in Pakistan.

In addition, the role of firm specific, business condition specific variables in dividend stability are

needed to be explored. The industrial differences are important as because the practice of corporate

governance is different among different industries so does their dividend policy is also different.

In short, this study will examine whether the corporate administration rules and guidelines both

internal and external have impact on dividend dependability when they are considered with firms'

qualities and business states of the economy.

1.4. Objective of the study:

The objectives of the study are as follows.

▪ To identify the relationship between Corporate Governance and Dividend Policy in listed

energy sector companies in Pakistan.

▪ To find out the impact of Corporate Governance Variables on Dividend Policy in listed

energy sector companies in Pakistan.

1.5. Research Question:

▪ What are the internal and external corporate governance factors that influence the dividend

policy of Pakistani energy sector companies?

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1.6. Significance of the study:

In Pakistan dividend payments are not mandatory and minority investors are mostly ignored even

though individuals purchase shares of organizations. This is on the grounds that "dividends" are

safer than the capital gains. After the presentation of Corporate Governance Code in 2002, it is

expected that organizations' monetary decisions would be more effective for its proprietors

(investors).

This study is also important as it complements a long series of studies that aimed to identify

corporate governance and its relationship to various aspects. This may contribute to enriching the

literature of the Agency’s theory which explains the dividend policy; the study also contributes to

the debate on this dialectical relationship as well as its relationship to the company’s different

characteristics including size of the company, profitability, size of its indebtedness, and growth

opportunities.

6
2. Literature review:

2.1. Theoretical Review on Corporate Governance and Dividend Payout Policy

Prior to MM hypothesis, numerous researchers accepted that with no market flaws, more the firm

delivers dividend, more it’s worth increments. As indicated by MM model (1958) under the ideal

market suspicion the capital structure is unimportant for the financing choice of the firm, thusly,

inner and outside financing are perfect substitutes and dividend are unessential on the value of the

firm.

2.1.1. The Signaling Theory

Leland and Pyle (1976) and Ross (1981) created theory of signaling. Managers have more

noteworthy insider information concerning the firm than other speculators, however they are

continually reluctant in offering admittance to transparent information. They normally attempt to

conceal info from other equity providers. Thus, financial specialists decipher the dividend strategy

as information, all in all we can say that it goes about as a sign for future projections of the

undertaking. This hypothesis proposes that if firm is running easily, this shows that firm has

adequate assets. Along these lines, the board can make dividend payments to flag that the firm is

performing admirably and has the ability to disperse its wealth. Essentially no dividend payments

can glide a terrible sign about the company's for quite some time run earnings and furthermore

about the nature of managers in the market [Lintner (1956)].

2.1.2. Free cash flow theory

It expresses that as the directors’ approach company's resources, subsequent to making all the

installments and important investments if firm actually has left some additional money, they can

put this additional money in different projects. This additional speculation likewise imparts a

7
positive sign with respect to the association's exhibition. In any case, now and again troughs

likewise may put resources into negative NPV projects which impart terrible signs in the market.

2.1.3. Free cash flow hypothesis

It expects a positive strange return if the firm beginnings delivering dividends rather than over

investing. Rent extricating speculation proposes that dominant part investors misuse the minority

investors. They propose that firm with lower investment openings should increase their dividends

to diminish the free cash flow.

2.1.4. Agency theory

In agency theory, Jensen and Meckling (1976) contend that the agency relationship is made among

agent and principal when principal recruits the agent to do his obligations for his sake. D‟Souza

and Saxena (1999) contends that agency cost is contrarily related with dividend payouts of the

organizations. Essentially, Rozeff (1982) contends that dividend is a device for lessening agency

cost. Jensen (1986) proposed that dividend payments lessen the contention among managers and

investors of the firm. Managers need to hold the assets of the firm rather than dividends. They

follow the growth chances of the firm on the grounds that for this situation more assets of the firm

will go under their control. Then again, investors of the association need dividend as opposed to

retained earnings. Consequently, if dividends are not paid, the manager may utilize these assets

for their own advantages, or they may put these assets in unbeneficial projects.

2.2. Empirical Literature on Corporate Governance and Its Impact on Dividend Policy

The first and foremost model created for dividend strategy is introduced by John Lintner in 1955.

Lintner (1956), to introduce some more by and large significant consequences of the investigation

of dividends strategy, he has done field examination and discovered that administration attempts

8
to mirror the expansion of earnings in their payouts and the main determinants of dividends are

past payout proportion and net earnings.

Mayers (2000) and Jensen (1986) contend that as indicated by agency theory the contention

between the outside investors and managers of the association can be decreased by delivering

dividends to investors and accordingly the managers can't dispossess the held earnings. Rozeff

(1982) contended that dividend installment diminishes because of the presence of inside investors.

He utilized dividend payout proportion as a measure of dividend strategy for a sample of 1000 US

firms and discovered negative connection between dividend payout proportion and the presence

of inside investors. Belden et al. (2005) contend that the presence of outside directors in the board

increase dividend payouts. They utilized a sample of 524 biggest American organizations and

discovered negative connection between the external directors in the board and dividends payouts

of the organizations. Mitton and Todd (2004) directed an examination on the relationship of

corporate governance and dividend payout proportion of firm. He utilized an example of 19 arising

economies and found that solid corporate governance fundamentally and positively influences the

dividend payouts of the organizations.

Mayers and Lambrecht (2010) present a joined hypothesis of dividend, debt, and investment and

find that to stop the mediation of outside investors, troughs payout in type of dividends barely

enough that it will get the investors far from any considered intercession. They show that dividend

payout increments with the expansion in investior's security. Allen and Micaely (2003), Leary and

Micaely (2008) find that dividend strategy is preferred clarified by agency theory over by the

signaling theory since agency theory incorporates managers viewpoint likewise in setting the

objective payout and future dividends additionally while signaling theory just signals about the

future payments. Titman and Wessels (1988) suggest that a firm with more insurance have a lower

9
extent of agency issues among shareholders and bondholders. The higher the security, bring down

the limitations on firms' dividend strategy, thus, a higher dividend payout. Farinha (2002) finds

that liquidity needs of insider proprietors are the explanation of positive connection between

dividend payout and insider possession.

Al-Malkawi (2007), reports that the relationship of organization's age is altogether sure with

dividend payouts and this relationship is non-linear. Like firm explicit components and corporate

governance systems, economic conditions likewise have their effect on dividend dynamic of firms.

Pakistani economy is experiencing helpless conditions since a decade ago because of elements like

energy emergency, shaky financial conditions, and other socio-political elements. This all brought

about a lazy GDP development and the contrast between the real and expected GDP is developing

each year. In the event that better administration and changes are received, at that point Pakistan

can produce a more prominent skip in its economy than other developing business sectors in South

Asia [Burki (2012)].

2.3. Review of Dividend Policy and Corporate Governance Practices in Pakistan

Javid and Ahmed (2011), locate that to settle on dividend decisions firms keep into account the

previous dividends, profits and deterioration. They show that the Lintner model fits the information

well if there should be an occurrence of assembling area of Pakistan. Be that as it may, Sajid, et al.

(2012) have discovered that in Pakistan 72 percent of the banks deliver dividends and growth,

profit and size have a positive relationship with dividend payout and dividend yield. Irfan (2010)

finds that any adjustment in association's dividend strategy essentially impacts the share cost, for

example share price is profoundly unpredictable if dividend measure (dividend yield and dividend

payout proportion) changes. This relationship stays as before even in the wake of controlling the

association's resource growth or leverage etc.

10
Shah et al. (2011) completed an exploration concentrate on the effect of proprietorship structure

on dividend strategy of firms in Pakistan. Utilizing Common Effect Model, they found a positive

connection between proprietorship structure of governing body and dividend payout of the

organizations recorded on KSE. Afzal and Sehrish (2011) led an investigation on the connection

between possession structure, board organization and dividend of strategy of firms recorded on

KSE. Utilizing OLS model they found that board size, firm size, singular possession, and

investment openings are essentially decidedly related with dividend payout of the organizations.

They additionally found a positive connection between board autonomy and dividend payout of

the organizations, yet the outcome was not significant.

11
3. Data and Methodology:
3.1. Data Sources:

The data utilized in this investigation is acquired from the significant wellspring of Pakistan Stock

Exchange (PSX) and Securities and Exchange Commission of Pakistan (SECP), the period of 2000

to 2019.

PSX, already known as KSE is one of the greatest and most fluid stock trades in Pakistan. It has

been proclaimed as a standout amongst other performing stock trades in Pakistan (Business week,

2002). SECP was set up in order of the Securities and Exchanges Commission of Pakistan Act,

1997. Yearly reports of organizations are acquired from SECP. Data on organizations is taken from

the official site of PSX and SECP where the information is adjusted by the time span. The

unbalanced data is acquired for 84 recorded firms from the 7 distinct industries at Pakistan Stock

Exchange for a very long time (2000-2019), which is adequately enough to streamline the variable

vacillations [Rozeff (1982)].

3.2. Research Design:

Variable Description
• Internal Mechanisms
S.No Variable Description
1 Board Size if sufficient may be best tool for making decisions that are best for
company and shareholders.
2 Independent can keep an eye on management by not letting them send a false
board signal or asymmetric information to its shareholders
3 CEO duality Owning dual position in firm i.e., chairman and chief executive
officer may influence the dividend policy.
4 Ownership Block holders are monitors and do not allow the misallocation of
resources and prefer the free cash to be distributed in form of
dividends
5 Transparency increases the firm value and influences dividends. Because
management feels that they have declared information already.
6 Profitability increases as size of company increases.

12
 • External Mechanisms
S,No Variable Description
7 Audit quality plays an important role in improving the credibility of financial
information as well as decision making.
8 Shareholder The firms where shareholder rights are weak the management will be
rights likely to retain cash instead of distributing it.
• Firm’s specific factors
S.No Variable Description
9 Liquidity Dividend payer firms have lesser liquid assets in the market.
10 Growth, most important determinant of dividend is its earnings
profit & size a firm earning more can issue higher dividends.
A larger firm can give more dividends.
11 Stock price when dividends of a company are lower it is usually due to higher
share price.
12 Tobin’s Q New investment opportunities can influence the existing dividend
decisions.
13 Leverage The firms with higher leverage pay lower dividends in order to dodge
the cost of raising external capital of the firm.
• Economic factors
S,No Variable Description
14 Inflation Inflation effects dividend payout because on one hand it raises the
nominal value of firm’s dividends, but, on the other hand it also
increases the cost of investment.
15 GDP GAP As this gap increases, economic condition deteriorates which means
lower investment by the firms, lower earnings and hence lower level
of dividend

Table (1) is showing the listed firms.

13
 Vanaspati & Oil & gas Oil & gas
allied Power generation & marketing exploration
Industries Engineering Chemical industries Refinery distribution companies companies

Attock MARI
Huffaz Pipe Aisha Steel I. C. I. Agritech Extraction Attock Ref. Lalpir Power Altern Energy Petroleum Petroleum

Agritech Non- Oil & Gas

Int. Ind. Ados Pakistan Ittehad Chem. voting Morafco Ind. Byco Petr. Nishat Power Arshad Energy Burshane LPG Dev.

Aisha Leiner Archroma National Engro Hascol

Int. Steel Steel(ConPS) Gelatine Pakistan Punjab Oil Refinery Pakgen Power Powergen Petroleum Pak Oilfields

Ittefaq Iron Aisha Steel Pakistan S.G. Power Hi-Tech

Ind. (CPS) Lotte Chemical Bawany Air S. S. Oil Refinery Ltd. Hub Power Co. Lubricants Pak Petroleum

K.S.B. Pumps Amreli Steels Nimir Ind. Berger Paints Suraj Ghee Saif Power Jap. Power P. S. O.

Metro Steel Bolan Castings Nimir Resins Biafo Ind. Unity Foods Sitara Energy K-Electric Ltd Shell Pak.

Kohinoor
Mughal Iron Cres.Steel Pak Oxygen Buxly Tri-Star Power Energy Sui Northern

Firms
Kohinoor
Pak Engg. Dadex Eternit Pak. P.V.C. Colgate-Palm. Power Sui South Gas

Sardar
Quality Steel Dost Steel Chemical Data Agro Kot Addu

Drekkar Nishat Ch
Kingsway Shaffi Chem. Descon Oxy. Power

Sitara
Chemical Dynea Pak

Sitara Peroxide Engro Polymer

Ghani Global
Wah-Noble Hold.

14
Table 1
3.3. Methodology

3.3.1. Model Specification:

A. Lintner Partial Adjustment Model

Lintner (1956) proposes that corporate dividend conduct is really a partial adjustment model. At

whatever year t, firm i will change just incompletely because of the profit to the objective dividend

level. Thus, the accompanying General linter model is acquired:

Dit – Dit-1 = αi + βi (D*it – Dit-1) + εit

Where αi is a constant; βi is the speed of adjustment coefficient which lies between 0 and 1.

Dit – Dit-1 is the difference between current and previous dividends, (D*it – Dit-1) is the difference

between target payout and previous dividend payments or it can be said as desired difference in

the dividend payments.

There are two diverse hypotheses about profit can be examined. If αi = 0 and βi = 1, the actual

changes in dividend payment match with the desired changes. On the other hand, if βi = 0 it means

that no changes in dividends for desired level are assumed. The hypothesis that firms steadily

adjust dividends in response to variation in earnings means that a positive constant coefficient ai

represents the management unwillingness to decrease dividends. After some adjustments the

following empirically, testable equation is obtained:

Dit = αi + γi Eit +𝜂i Dit-1 + εit (1)

Where ri = γi /βi is target payout ratio, di = 1– βi. βi being speed of adjustment coefficient dividend yield

is used as dependent variable.

15
 B. Lintner model with extension of Corporate governance:

The model can be extended in this way of regression model after adding the Corporate governance:

Dit = αi + γi Eit +𝜂i Dit-1 +ΣitgiCGit+ εit (2)

Where ΣitgiCGit is the vector of both internal and external corporate governance both internal and

external mechanisms.

C. Lintner model with extension of Firm Specific and Corporate governance

Determinants:

Dit = αi + γi Eit +𝜂i Dit-1 +ΣitgiCGit+ ΣitfiFSit + εit (3)

Where ΣitfiFSit is the firm specific factors vector.

D. Lintner Model with Economic Conditions and Corporate Governance:

Dit = αi + γi Eit +𝜂i Dit-1 +ΣitgiCGit+ ΣithiBCit + εit (4)

ΣithiBCit are vector of business condition that are used in this study and can affect dividend payout

policy of Pakistani listed firms at KSE. Further,

Dit = αi + γi Eit +𝜂i Dit-1 +ΣitgiCGit+ ΣitfiFSit + ΣithiBCit + εit (5)

This model provides us three crucial situations.

1. Dividend Stability

2. Set a target payout ratio which will be suitable for model

3. If it is necessary, then firm will avoid the dividend cuts.

16
3.4. Econometric technique

In this study because the analysis relies on dynamic panel, so, the instrument-based technique

is most suitable choice and generalized technique of moment is employed during this analysis. The

lag instructive and dependent variables square measure used as instruments.

In order to check whether or not the firm specific, internal and external governance affects, and

economic conditions exist the hypothesis that the constant terms square measure all equal by

estimating the GMM common impact models, GMM mounted impact models and also

the GMM random effects models. Hausman test is performed to settle on the foremost acceptable

model, as instructed by Hausman (1978). This test at data point is asymptotically distributed as

chi-square under:

H0: correlation between stochastic error term and explanatory variables is zero.

If yes then Rem will be preferred on FEM.

We will utilize the GMM as proposed by Arellano and Bond (1991) and last mentioned altered by

Blundell and Bond (1998). GMM is utilized due to its two properties. To begin with, it takes into

account past degree of factors to influence their present level. Second, the slacked subordinate

variable is destined to be related with the firm explicit, administration, just as monetary condition

factors which might be conflicting while utilizing the OLS assessment methods. The consistency

of GMM procedure relies on the strength of added instruments. In this way, Sargan test is utilized

to check the legitimacy of instruments by investigating the example simple of second conditions

[Sargan (1958); Hansen (1982)]. The primary contrast eliminates the firm explicit impacts also,

instruments set incorporates the levels and slacks of needy and exogenous factors. In contrast

GMM gauges slack factors are powerless instruments [Blundell and Bond (1998)], in this way

17
effectiveness can be expanded by adding the unique condition in the level to the framework, if the

principal contrast of the informative factors is uncorrelated with unique pacts. Slacked reliant and

exogenous factors can be utilized as instrument factors.

4. Conclusion

The study will determine the impact of corporate governance and its impact on dividend policy

from the energy sector of Pakistan industry. The linter model will be used on the data set. This

research will significantly contribute to literature in addressing the policy gap.

18
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