Dividend Paying Behavior in Pakistan

The dividends are the compensation, strewed earnings or the capital stock paid out to the shareholders for risk bearing on the investment. The managers are confronted with the challenge in earning's management when arriving at the investment and the dividend decisions. Normally, the investment decision is preferred to the dividend one. Due to the wobbly corporate governance and the weak legal system, the growth is not being transformed properly to the investors. As a result the funds are exploited by the management for its own ends. It is an effort to put some light on the dividend paying behavior of the companies in the developing countries particularly in Pakistan.