This study investigates the impact of key macroeconomic variables Trade openness, Population and Trade deficit on dividend payout decisions within Pakistan’s textile. Drawing the data from 68 listed textile firms over the period 2018-2022, the research employs a logit regression model to explore how these variables corporate dividend behavior in emerging economy characterized by political and economic instability. The findings reveals that trade openness has significant negative impact on dividend payouts, suggesting that increased global exposure prompts firms to retain earnings to buffer against external shocks. Population shows an insignificant relationship with dividends reflecting the export-oriented nature of the sector. Conversely, trade deficits are found to have a significant positive relationship with dividend payouts, possibly due to currency depreciation benefits and supportive government policies during deficit periods. The study contributes to understanding the complex interplay between macroeconomics dynamics and corporate financial decisions in developing markets.
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