Relationship Between Interest Rate, Inflation Rate, Unemployment And The Current Account Balance With The Dividend Payout Ratio: A Case Study Of Textile Sector

Abstract

This study pinpoints the relationship between the inflation rate, the interest rate, unemployment rate, and current account balance with dividend payout ratio from Pakistan's textile sector. The study used the time series annual data from 2001 to 2019. The study used the OLS model, of which the multiple regression is applied for the analysis of the data. Beforethe OLS, the preliminary test was checked and confirmed that the data is normal, having no multicollinearity andheteroskedasticity. Furthermore, the finding shows a positive relationship between the interest rate and current account balance. Simultaneously,a negative relationshipbetween inflation and unemployment with dividend payout ratio and the current account balance is statistically significant. The study also suggested limitationsand recommendations for future research.