Ownership Concentration, Dividend Payout and Firm Performance: The Case of Malaysia

Ting, Irene Wei Kiong; Kweh, Qian Long; Somosundaram, Kausalyaa

doi:10.22452/mjes.vol54no2.6

Cited by 16 publications

(15 citation statements)

References 31 publications

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“…The DP of Indian companies is higher than that reported for developed markets like the US (11.3% reported by Jensen et al, 1992) and Japan (14.4% reported by Harada & Nguyen, 2011) but lower than that of other developing countries Malaysia (38.5% reported by Ting et al, 2017) and Thailand (46.9% reported by Thanatawee, 2013).…”

Section: Analysis and Discussioncontrasting

confidence: 55%

“…Some empirical studies have observed a negative relationship between ownership concentration and dividend payout. Notable among these studies are Ting, Kweh, and Somasundaram (2017), Harada and Nguyen (2011), Khan (2006), Renneboog and Trojanowski (2007), and Gugler and Yurtoglu (2003). Ting et al (2017) examine how ownership concentration affects dividend payout in Malaysia.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Notable among these studies are Ting, Kweh, and Somasundaram (2017), Harada and Nguyen (2011), Khan (2006), Renneboog and Trojanowski (2007), and Gugler and Yurtoglu (2003). Ting et al (2017) examine how ownership concentration affects dividend payout in Malaysia. They find that dividend payout is lower when ownership concentration is high.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Ownership Concentration and Dividend Payout in Emerging Markets: Evidence from India

Arora

Srivastava

2019

Global Business Review

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Ownership concentration plays an important role in determining the dividend payout of firms. Ownership concentration of Indian companies is quite high due to their peculiar shareholding pattern. We examine the relationship between ownership concentration and dividend payout in India over the period 2010–2017 using panel-data methodology and found that ownership concentration is positively correlated with dividend payout. The evidence, which is at odds with that in many developed markets, corroborates similar findings in many other emerging markets. Corporate dividend policy in emerging markets seems to be different from that in developed markets. Further, the presence of a large shareholder, other than an individual, outside the promoter group has a negative influence on the dividend payout. This negative influence is higher for a financial company and is strongly dependent on the size of the shareholding of such large shareholder relative to that of the promoter group. This study provides additional insights into the relationship between ownership concentration and dividend payout in India and contributes to the growing literature on this relationship. Fund managers and investors can use the findings of the study to predict firms’ payout and to build their portfolios by selecting stocks that best suit them.

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Section: Analysis and Discussioncontrasting

confidence: 55%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Ownership Concentration and Dividend Payout in Emerging Markets: Evidence from India

Arora

Srivastava

2019

Global Business Review

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“…Ownership concentration and CFP may have a parallel relationship (Al-Najjar & Abed, 2014;Huang, 2020;Ozili & Uadiale, 2017). In the Malaysian context, concentrated ownership investors play an important role in deciding the financial success of companies in several sectors (Ting et al, 2017). However, in the present study, ownership concentration has had an insignificant negative impact on CFP 108…”

Section: Ownership Concentrationcontrasting

confidence: 53%

Talent Management Disclosure as a Mediator Between Corporate Governance and Financial Performance

Sulaiman

Mohd-Sabrun

Muhamad

2022

Malaysian Management Journal

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Active participation from the corporate sector in designing and implementing corporate social responsibility (CSR) activities is critical for company resilience and reliance. It has been suggested that companies need to integrate CSR activities with talent management strategies. However, the extant literature on CSR reporting has limited research focusing on talent management in CSR activities. Therefore, this study examines the extent of talent management disclosure (TMD) made by the top 100 Malaysian public-listed companies (PLCs). Particularly, this study examines the mediating effect of TMD on the corporate governance characteristics (CGC) and corporate financial performance (CFP) relationship. Generalised Linear Modelling (GLM) was used to analyse the cross-sectional data. The results indicate that female directors positively influence CFP, whereas independent directors negatively correlate with CFP. This study also finds that TMD has an insignificant moderating role in the CGC and CFP relationship. Nevertheless, the newly developed TMD provides a new perspective on talent management research. TMD is a new research avenue under-researched and needs more academic and business executive attention. Thus, this research invites academia and company management to revisit CSR activities by embedding talent management strategies.

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“…These studies investigated the impact of ownership structure on dividend policy in the industrial and the service sectors. Moreover, some other current studies examined how ownership concentration affects dividend payout, and ultimately firm performance, such as in Malaysia context (Ting, Kweh, & Somosundaram, 2017). Dividend paying firms enhance firm performance.…”

mentioning

confidence: 99%

Ownership Concentration, Dividend Policy and Firm Performance in Pakistan

Aguir¹

2019

RJFA

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Data is drawing from a sample of Chemical firms listed at Karachi Stock Exchange of Pakistan over the period 2002-2017, this paper investigates the relationship between ownership concentration and dividend policy on firm financial performance. Using panel data analysis, the evidence is found to support the assumption of a significant relationship between ownership concentration and dividend policy on firm financial performance. The findings reveal that ownership concentration has a significant positive association with firm financial performance. This stated that larger shareholders can attribute to the alignment of managerial incentives with shareholder interests. They also monitor the team very effectively and efficiently. Dividend policy has a significant positive relationship with ROA. Leverage and Tangibility have a significant negative relationship with financial performance. Board size also has a significant positive impact on firm performance. These results potentially can be relevant for policymakers and academic research.

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Ownership Concentration, Dividend Payout and Firm Performance: The Case of Malaysia

Cited by 16 publications

References 31 publications

Ownership Concentration and Dividend Payout in Emerging Markets: Evidence from India

Ownership Concentration and Dividend Payout in Emerging Markets: Evidence from India

Talent Management Disclosure as a Mediator Between Corporate Governance and Financial Performance

Ownership Concentration, Dividend Policy and Firm Performance in Pakistan

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