Document Type : Research Article



The central aim  of  the  study  was  to  examine  the  effect of dividend  policy on  the  firm  financial performance of non-financial companies in Pakistan. Data was collected from the annual reports of non-financial companies listed on Pakistan Stock Exchange (PSX) for the period 2010 to 2015. Return on Assets (ROA) and Return on equity (ROE) were used to measure the firm’s financial performance. Dividend Coverage Ratio (DCR), Dividend Payout Ratio (DPR) and Retention Ratios (RR) were used to calculate Dividend policy whereas debt to equity ratios were used to measure Capital Structure.
For analyzing data the panel regression analysis method had been used as a statistical technique wherein a significant positive relationship was found between the firms ‘performance and the dividend policy, whereas the firm’s size was in-significant to the firms’ financial performance.