Bowman's Paradox: An Empirical Application of Prospect-Theory-Based Risk-Return Relationship Risk Return Paradox: A case study of Pakistan
Download| Volume 4 Issue 2, 2023 | |
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| Author(s): |
Vijay Kumar (Corresponding Author)
Abdul Hameed
Musarrat Karamat
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| Abstract | The objective of this research was to find out the Relationship between risk and return using bowman,s paradox with dividend payout ratio, size, market capitalization, tax and leverage. For analysis purpose, a sample of 75 listed financial and non-financial companies were taken out of 519 from Pakistan stock exchange (PSX) market. In this study, variables data was taken from the period of 2012-2022. Panel regression technique was used to analyze the relationship between risk dividend payout ratio, size, market capitalization, tax and leverage and return. Fixed effect model utilized because Hausman test show that fixed effect model is appropriate for this study. A negative relation was found between return, dividend payout ratio, market capitalization while positive relationship found between size, tax and leverage on risk of listed firms. This study supports the fact that risk and return of Pakistani listed financial and non-financial firms was relevant in determining for a sample of firms listed in the Pakistan Stock Exchange. This study was also showing that corporate return and risk was a key driver for the firms in the Pakistan. |
| Keywords | Risk, Return, Dividend payout ratio, Bowman’s theory, Pakistan, Fixed effect model |
| Year | 2023 |
| Volume | 4 |
| Issue | 2 |
| Type | Research paper, manuscript, article |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | ILMA Journal of Social Sciences & Economics | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/ | ISSN no (E, Electronic) | 2790-5896 | ISSN no (P, Print) | 2709-2232 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ijsse.ilmauniversity.edu.pk/arc/Vol4/pdf/v2/5.pdf |