Breathless Returns: Assessing Air Pollution's Influence on Dividend Yields in Pakistan and the USA

Abstract

Enterprises and companies are also impacted by air pollution in addition to people and the environment. Air pollution can result in decreased output and sharp rises in healthcare costs. Publicly traded firms' profitability and stock prices are significantly impacted by air pollution. Dividend yield, which has significant importance to investors, is a critical component of stock market growth. The relationship between air pollution and dividend yield can give investors relevant information on the financial success of businesses. Pakistan has been chosen as a case study for research on how air pollution affects dividend yield. In order to better understand the possible effects of air pollution on financial performance in emerging nations, it is fascinating to look at Pakistan, which has a booming economy and a rising stock market. Pakistan stock exchange (PSX) and S&P 500 stock exchanges' dividend yields are compared to see how air pollution affects them. In their respective regions, they are two of the most well-known and recognized stock market indices. This study employed regression analysis to look at the relationship between dividend yield and air pollution. Finding relationships between the variables and examining how air pollution impacts dividend yield were the two goals of the investigation. The results of the investigation depict that dividend yield is significantly impacted by air pollution.