Role of Ownership Concentration and Dividend Policy on Firm Performance

Murtaza, Sadia; Noor-Ud-Din, Ahmad; Aguir, Amel; Batool, Saadia

doi:10.33215/sjom.v3i2.255

Cited by 6 publications

(5 citation statements)

References 62 publications

(56 reference statements)

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“…Paying a high dividend alleviates the agency problems and eventually serves minority shareholders in the Turkish market. This finding corroborates the previous studies (Shleifer and Vishny, 1986; Chang et al , 2016; Murtaza, Noor-Ud-Din, Aguir, and Batool, 2020).…”

Section: Analysis Of the Outcomessupporting

confidence: 94%

Ownership structure, board characteristics and dividend policy: evidence from Turkey

Khan

2021

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Purpose This study aims to investigate the impact of ownership structure and board characteristics on dividend policy in the listed Turkish firms between 2013 and 2019. Design/methodology/approach This study uses the probability of paying dividends, dividend payout ratio and dividend yield measures. The suitable regression procedures (logit, probit and Tobit models) are used to examine the research hypotheses by focusing on a panel data set drawn from the Borsa Istanbul (BIST) 100 index, excluding financial and utility firms. Findings The empirical findings indicate that institutional and concentrated ownerships are significant and positively associated with dividend payouts, whereas family ownership does not influence dividend policy. On the other end, board size is positive, while chief executive officer duality is negatively related to dividend policy. Additionally, the female directors and board independence are insignificant in influencing firms to pay high dividends. Research limitations/implications Future researchers can validate this paper’s findings by considering the stock dividends as well. Additionally, future researchers may investigate the relationship between these constructs by extending the sample size of firms listed on BIST or in other emerging markets. Practical implications This study’s findings may serve policymakers, regulators, investors and academic researchers to get valuable guidance from relevant literature. The Turkish firms may improve dividend policy by implementing the regulatory framework introduced by the Capital Markets Law in 2012 for effective monitoring and protecting the minority shareholders’ rights. The controlling shareholders may alleviate principal-principal conflicts by ensuring the independence of directors and increasing the number of female directors according to the critical mass of at least 30% of board members. Originality/value This study contributes to agency theory and signaling theory by considering ownership structure and board attributes among Turkish firms related to dividend payments.

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Section: Analysis Of the Outcomessupporting

confidence: 94%

Ownership structure, board characteristics and dividend policy: evidence from Turkey

Khan

2021

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“…It reveals that dividend per share has a positive impact on return on assets. This finding is similar to the findings of Rahman (2018). Furthermore, the beta coefficients for premium growths are positive with return on assets.…”

Section: Regression Analysissupporting

confidence: 89%

“…Furthermore, Ajanthan (2013) established positive and statistically quite meaningful relations between dividend per share and firm performance. In addition, Rahman (2018) indicate that there is an insignificant and positive relationship between return on equity (ROE) and dividend per share (DPS). Based on it, this study develops the following hypothesis:…”

Section: Dividend Per Sharementioning

confidence: 99%

Effect of firm specific and macroeconomic factors on profitability of Nepalese insurance companies

Khadka¹

2023

Lumbini J. Bus. & Econ.

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This study examines the effect of firm specific and macroeconomic factors on profitability of Nepalese insurance companies. Return on asset and return on equity are selected as the dependent variables. Similarly, firm size, liquidity, tangibility, dividend per share; premium growth, inflation, gross domestic product and money supply are selected as the independent variables. This study is based on secondary data of 16 insurance companies with 124 observations for the study period from 2013/14 to 2020/21. The data were collected from collected from reports published by the insurance board of Nepal, annual reports of respective insurance companies and World Bank database. The correlation coefficients and regression models are estimated to test the significance and importance of firm specific and macroeconomic factors on the profitability of Nepalese insurance companies. The result showed that firm size have the negative impact on return on assets and return on equity. It indicates that the increase in the firm size leads to decrease the return on assets and return on equity. Similarly, the studies showed that liquidity rate have also the negative impact on return on assets and return on equity. It indicates that the increase in the liquidity leads to decrease the return on assets and return on equity. On the other hand, the studies found that tangibility have the positive impact on return on assets and return on equity. It shows that the increase in the tangibility leads to increase the return on assets and return on equity. Likewise, the studies found that dividend per share have the positive impact on return on assets and return on equity. It shows that the increase in the dividend per share leads to increase the return on assets and return on equity. Similarly, the studies found that premium growth have the positive impact on return on assets and return on equity. It shows that the increase in the premium growth leads to increase the return on assets and return on equity. Furthermore, gross domestic products have the positive impact on return on assets and return on equity. It means that increase in the gross domestic product have leads to increase the return on assets and return on equity. Moreover, inflation has the negative impact on return on assets and return on equity. It shows that increase in the inflation leads to decrease the return on assets and return on equity. Likewise, money supply has the negative impact on return on assets and return on equity. It indicates that the increase in the money supply leads to decrease the return on assets and return on equity of Nepalese insurance companies.

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“…Pengaruh Kebijakan Dividen terhadap Kinerja Perusahaan Investigasi oleh (Murtaza et al, 2020) menunjukkan bahwa kebijakan dividen memang mempengaruhi kinerja bisnis dengan baik. Temuannya memperkuat gagasan bahwa kebijakan dividen dapat meningkatkan keuntungan perusahaan.…”

Section: Kerangka Konseptualunclassified

Pengaruh Kepemilikan Institusional Dan Kebijakan Dividen Terhadap Kinerja Perusahaan Dengan Umur Perusahaan Sebagai Variabel Kontrol Pada Perusahaan Sektor Manufaktur Yang Terdaftar Di Bei 2019-2021

Arnitia Rahmatika,

Idrianita Anis

2023

j. ekon. n.a. econo.

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This study examines the impact of institutional ownership and dividend policy on the financial outcomes of manufacturing businesses trading on the Indonesia Stock Exchange (BEI) from 2019 to 2021, with the impact of company age serving as a control variable. To determine an organization's Return On Assets (ROA), net income is divided by its total assets. The age of a company is calculated by subtracting the current year from the year it was founded; the Institutional Ownership Ratio compares the percentage of shares owned by institutions to the total number of shares outstanding; and the Dividend Payout Ratio (DPR) evaluates dividends paid to shareholders in relation to earnings per share. The 183 companies included in this study were chosen using a stratified random selection technique. This study's results suggest that (1) institutional ownership significantly affects firm performance in a positive way. (2) A dividend plan is excellent for a company's bottom line.

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Role of Ownership Concentration and Dividend Policy on Firm Performance

Cited by 6 publications

References 62 publications

Ownership structure, board characteristics and dividend policy: evidence from Turkey

Ownership structure, board characteristics and dividend policy: evidence from Turkey

Effect of firm specific and macroeconomic factors on profitability of Nepalese insurance companies

Pengaruh Kepemilikan Institusional Dan Kebijakan Dividen Terhadap Kinerja Perusahaan Dengan Umur Perusahaan Sebagai Variabel Kontrol Pada Perusahaan Sektor Manufaktur Yang Terdaftar Di Bei 2019-2021

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