Dividend policy and shareholders’ wealth. A comparative analysis of Shariah-compliant and noncompliant nonfinancial firms in Pakistan

What is it about?

In financial management, the goal of a business firm is to maximize its shareholders' wealth. Therefore, all the decisions of firms, including the dividend decision, revolve around the objective of maximizing the shareholders' wealth. Dividend decision is one of the key corporate finance decisions that affect firm value and shareholders' wealth. We comparatively examine the effect of dividend policy on shareholders' wealth for Shariah-compliant firms that is lacking in the existing literature. We also compare the results with those of noncompliant firms.

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