Ownership structure and dividend policy: Evidence from Iran

Sasan, Mehrani; Moradi, Mohammad Ali; Esk, Hoda

doi:10.5897/ajbm11.468

Cited by 34 publications

(18 citation statements)

References 38 publications

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“…Jensen (1993) shows that the association between managerial ownership and dividend policy has been reported with a negative effect, i.e where the managerial ownership increase dividend policy pay will decrease. Mehrani et al (2011) find a negative association between managerial ownership and dividend pay-out policy which in support of the Chen, Cheng and Hwang ( 2005) and Short et al (2002) whom indicated a negative association between managerial ownership and dividend payment policy of bank holding company. Similarly, Chen, Cheung, Stouraitis and Wong (2005) reported a negative association between managerial ownership and firm performance.…”

Section: Managerial Ownership and Dividend Policysupporting

confidence: 54%

“…This result is in line with Fama and French (2000); Han et al (1999) and Short et al (2002) who reported that there is significant and positive association between the dividend policy and institutional ownership. While it contravenes the result of Mehrani et al (2011) who found negative relationship between dividend payment policy and institutional shareholders.…”

Section: Resultsmentioning

confidence: 50%

“…It increases the value of the company because of their influence for a better investment. However, Mehrani, Moradi and Eskandar (2011) reported a negative relationship between institutional ownership and dividend policy. Based on the agency theory, the study hypothesis as follows: H1: Institutional ownership has positive significant relationship with dividend policy of the listed conglomerate companies in Nigeria.…”

Section: Institutional Ownership and Dividend Policymentioning

confidence: 99%

See 2 more Smart Citations

Ownership Structure and Dividend Policy of Conglomerate Firms in Nigeria

Miko¹,

Kamardin²

2015

AJIS

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Dividend policy is considered an integral policy in company decision that can have a big impact on the investors' reaction. This study examines the effect of ownership structure on the corporate dividend policy in the line with agency context. This study covers the period of ten years (2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010), with a sample of eight ( 8) conglomerate firms, consisting of 80 firm-observations. Data were extracted from the annual reports of the conglomerate firms. The empirical results depict a positive association between dividend pay-out and institutional ownership as well as block-holders ownership, but a negative association with managerial ownership. The results reveal that the higher the institutional and block-holders shareholdings the higher will be the firm dividend pay-out. The result also suggests that dividend policy is used by managers expropriate the shareholders wealth. In line with the result, it is recommended that conglomerate firms in Nigeria should encourage more shareholdings by institutions as well as block-holders to reduce the opportunistic practices through dividend policy.

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Section: Managerial Ownership and Dividend Policysupporting

confidence: 54%

Section: Resultsmentioning

confidence: 50%

Section: Institutional Ownership and Dividend Policymentioning

confidence: 99%

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Ownership Structure and Dividend Policy of Conglomerate Firms in Nigeria

Miko¹,

Kamardin²

2015

AJIS

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“…This is consistent with the works of Short, Zhang, and Keasey (2002) and Jayesh (2003). Mehrani, Moradi, and Eskandar (2011) found evidence of a negative relation between directive ownership and the dividend payment policy. Khan (2006) also analyzes the relation between dividends and ownership structure, arguing that there is a negative relation between the payment of dividends and the concentration of ownership; furthermore, the author finds that the composition of ownership is also a relevant variable.…”

Section: Review Of the Literaturementioning

confidence: 98%

Ownership structure and its effect on dividend policy in the Mexican context

Reyna¹

2017

Contaduría y Administración

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This work focused on analyzing whether the ownership structure has any effect on the dividend policy of companies in the Mexican market. The decision of dividend payment is one of the major elements in corporate policy, as this dividend policy influences the value of the company. Therefore, decisions such as adopting a company growth policy through the reinvestment of profits, or better yet allocating them to the payment of dividends, are going to be influenced by the type of ownership structure that dominates the company. The analysis was based on three types of ownership structures such as: families, institutions (mainly banks) and small blocks of shareholders. Our results show that the concentration of property in families negatively influences the payment of dividends, whereas the presence of institutional shareholders has an inverse effect on the payment of the same. This indicates that the presence of big shareholders foreign to the families has a different effect on the payment policy of dividends in the Mexican context. This work provides literature information about the context of emerging countries as is the case of Mexico, given that much of the existing investigations focus on European or North American contexts, where the markets are well regulated and property is broadly distributed.

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“…Besides, there is also evidence that poor corporate governance has adverse effects on the group of minority shareholders. Mehrani et al (2011), examined the influence of the shareholders groups on the dividend policy of companies listed on the Tehran Stock Exchange of Iran. The findings demonstrate a positive influence on dividend payments if the stake of shareholders is highly concentrated.…”

Section: Theoretical Background and Related Literaturementioning

confidence: 99%

Shareholder Structure and Dividend Policy in the Developed Markets of Asia-Pacific

Arndt¹

2020

EJOBSAT

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The objective of this study is to examine the relationship between the shareholder structure and dividend policy of an entire region -the developed markets in the Asia-Pacific region. The results show that at least three shareholder groups influence the dividend policy of companies. The group of investment advisors favours higher dividend payments. However, the greatest likelihood to receive extraordinary dividend payments is with shares of companies with a high stake of government investors. Further, the group of minority shareholders show a negative influence, which might be affected by the low interest-rate period and hence the lack of alternative investment opportunities for members of this group.

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Ownership structure and dividend policy: Evidence from Iran

Cited by 34 publications

References 38 publications

Ownership Structure and Dividend Policy of Conglomerate Firms in Nigeria

Ownership Structure and Dividend Policy of Conglomerate Firms in Nigeria

Ownership structure and its effect on dividend policy in the Mexican context

Shareholder Structure and Dividend Policy in the Developed Markets of Asia-Pacific

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