Dividend Policy and Institutional Holdings: Evidence from Australia

Abstract

This paper investigates the relationship between dividend payout and institutional ownership for all Australian listed firms in the period between 2001 and 2015. In our univariate tests, we find that institutional investors, in general, prefer dividend-paying firms more than non-paying firms, and for the dividend-paying firms in our sample, institutional investors hold more shares in the firms who pay higher dividends. We further explore the causality between dividend payout and institutional ownership in our multivariate tests with our panel data. The results show an insignificant effect of institutional ownership (dividend payout) on the future dividend payout (institutional ownership) while controlling for firms' fundamentals, that a higher dividend yield does not attract more institutional investors and that there is no catering to Australian institutional investors.

Dynamics between ownership structure and dividend policy: evidence from Bangladesh

“…Nonetheless, some researchers, in recent times, also focus on other types of ownership concentrated firms such as government (Lin et al , 2010; Bradford et al , 2013; Ben-Nasr, 2015), institutions (Kumar, 2006; Azzam, 2010; Berezinets et al , 2017), foreign (Lin and Schiu, 2003; Kumar, 2006; Lam et al , 2012) and public (individual) ownerships (Lee, 2010; Al-Najjar and Kilincarslan, 2016) to investigate the issue, but the numbers are still limited and even the findings are not conclusive (Al-Najjar and Kilincarslan, 2019). Besides, previous studies on the association of agency problems and dividend payouts are mainly carried out in the developed and advanced emerging economies like USA, UK, European countries, Australia and others, where financial markets are relatively well-structured and well-regulated and most of the firms are widely held (dispersed ownership) (Al-Najjar and Kilincarslan, 2019; Nguyen and Li, 2020). Even though we have recently found some studies on the same issue based on emerging economies, the number is very scant and the studies are not very comprehensive (Nguyen and Li, 2020).…”

“…Besides, previous studies on the association of agency problems and dividend payouts are mainly carried out in the developed and advanced emerging economies like USA, UK, European countries, Australia and others, where financial markets are relatively well-structured and well-regulated and most of the firms are widely held (dispersed ownership) (Al-Najjar and Kilincarslan, 2019; Nguyen and Li, 2020). Even though we have recently found some studies on the same issue based on emerging economies, the number is very scant and the studies are not very comprehensive (Nguyen and Li, 2020). Moreover, these studies too report mixed results.…”

Struktur Kepemilikan Terhadap Nilai Perusahaan dengan Kebijakan Dividen Sebagai Variabel Interveing

“…Indri A. Lestari, E. Hartaty Hardady, Rheza Pratama,Pengaruh Struktur Kepemilikan Terhadap Nilai Perusahaan Dengan Kebijakan Dividen Sebagai Variabel Intervening Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020 Fenomena di atas disebabkan manajer yang ingin mensejajarkan kedudukannya dengan pemegang saham. Permasalahan agensi dapat dikurangi dengan menyelaraskan kepentingan manajer dan pemegang saham, maka perusahaan memerlukan tata kelola perusahaan yang lebih baik lagi dalam melakukan pengawasan terhadap kinerja manajer agar memenuhi kepentingan pemegang saham.…”

“…Indri A.Lestari, E. Hartaty Hardady, Rheza Pratama,Pengaruh Struktur Kepemilikan Terhadap Nilai Perusahaan Dengan Kebijakan Dividen Sebagai Variabel Intervening Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020 …”

“…Indri A.Lestari, E. Hartaty Hardady, Rheza Pratama,Pengaruh Struktur Kepemilikan Terhadap Nilai Perusahaan Dengan Kebijakan Dividen Sebagai Variabel Intervening Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020 kontribusi dari variabel lain yang tidak dijelaskan dalam penelitian ini.Indri A.Lestari, E. Hartaty Hardady, Rheza Pratama,Pengaruh Struktur Kepemilikan Terhadap Nilai Perusahaan Dengan Kebijakan Dividen Sebagai Variabel Intervening Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Tahun 2016-2020 …”