Abstract:

This research investigates the impact of profit strategy on the financial performance of companies and shareholder wealth. A sample of 51 firms listed in the PSX database was examined during the period 2006-2015 using a typical steady effect model. Relapse analysis reveals a positive association between profit strategy and important financial metrics, including profit per share, share price, and return on equity. The findings support monetary theories like clientele effect, free cash flow hypothesis, and the bird-in-hand hypothesis, underscoring the manner in which profit payments affect speculator confidence and firm value. In addition, the results reconcile with the signaling hypothesis to reveal that profit strategy is an important indicator of a firm's monetary health. The consideration finishes up that a well-designed profit arrangement enhances shareholder wealth and corporate value, highlighting its importance in financial decision-making. These pieces of information provide valuable recommendations for financial experts, corporate managers, and policymakers in developing persuasive profit strategies.

Description:

.