THE IMPACT OF KNOWLEDGE MANAGEMENT ON DIVIDEND POLICY: A COMPARATIVE ANALYSIS OF ISLAMIC AND CONVENTIONAL BANKS IN PAKISTAN

Abstract

This study examines the impact of knowledge management on dividend policy in Islamic and conventional banks in Pakistan. Dividend policy is a major financial decision because it determines how much profit is distributed to shareholders and how much is retained for future growth, stability, and regulatory requirements. Existing studies on dividend policy in Pakistan have mainly focused on financial determinants such as profitability, liquidity, leverage, growth, firm size, and previous dividend payments. However, limited attention has been given to knowledge management as an internal organizational capability that may influence financial decision-making. Knowledge management improves information sharing, managerial decision-making, organizational learning, risk assessment, and operational efficiency. These factors may affect profitability and dividend decisions. This study is grounded in the Knowledge-Based View, Resource-Based View, and Agency Theory. It proposes a comparative quantitative research design using data from Islamic and conventional banks in Pakistan. The study contributes to banking and finance literature by integrating knowledge management with dividend policy and by comparing whether this relationship differs between Islamic and conventional banking systems.

Keywords: Knowledge management, dividend policy, Islamic banks, conventional banks, Pakistan, banking sector, financial decision-making.