Muhammad Saqib, Robin Zarine
Dividend stability is considered as important in order to enhance the confidence of investor . In order to determine the stability in dividends financial performance of the companies matters and operating cash flow has a major role. In the literature of governance , board size, ownership structure , and CEO duality are considered as very important determinant s of dividend pay - out . For the purpose of conducting this study, the data of 150 companies was operating in the non - financial sector of Pakistan stock exchange was collected from the annual reports of those companies . Proportionate sampling was conducted in order to include all the sectors. After ensuring the normality of data, regression was applied on the variables that were chosen on the basis of literature review . The results highlighted that all the variables i.e. board size, CEO duality, ownership structure, and operat ing cash flow, have a significant impact on the dividend pay - out . The findings of the study also supported agency theory and added operating cash flow in the agency theory which was the main contribution and significance of the study . The future researcher s are guided to analyse the same model in other stabilized economies a nd also with longitudinal data.