Impact of Ownership Structure on Dividend Policies of Indian Non-Financial Firms

Kiran, Alina; Ramesh, Kandela

doi:10.17010/ijf/2021/v15i2/157639

Cited by 3 publications

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“…However, this relationship was deemed insignificant. In a study conducted by Aydin (2015), it was discovered that foreign ownership has a positive impact on dividend payment. The research demonstrated how foreign shareholding influences corporate managers when it comes to determining dividend policies.…”

Section: I0 Introduction 11 Background Of the Studymentioning

confidence: 99%

Effect of Ownership Structure on Dividend Policy of Listed Firms at the Nairobi Securities Exchange

Maina,

Nasieku

2023

ijsshr

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Ownership structure leads to agency problems since majority shareholders have high levels of incentives hence, they monitor the actions of the management and influence decisions. There has been a growing debate on whether ownership structure impacts on management decisions especially dividend policy decisions. The objective of this study was to determine the effect of ownership on dividend pay-out of listed firms at Nairobi Securities Exchange. The study employed correlation analysis and multiple regression analysis in establishing relationship between types of ownership structures and dividend pay-out. This research was anchored by agency theory and utilized a cross-sectional descriptive research design. The population comprised of 63 listed firms listed in the ten-year Period under consideration. Diagnostic tests and descriptive statistics were carried out afterwards inferential statistics: correlation analysis and regression analysis were applied in hypothesis testing. The study found that an increase in concentration of Managerial Ownership and Foreign Ownership caused an increase in dividend pay-out because cash dividends tend to be higher where the managerial and foreign ownership presence in the board of directors is higher. In addition, state ownership and institutional ownership caused a caused a decrease in dividend pay-out because the state and Institutional Owners prefer cash retention as opposed to dividend distribution in the company.

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Section: I0 Introduction 11 Background Of the Studymentioning

confidence: 99%

Effect of Ownership Structure on Dividend Policy of Listed Firms at the Nairobi Securities Exchange

Maina,

Nasieku

2023

ijsshr

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Signaling vs. agency theory: What drives dividends of promoter-owned firms during a crisis?

Gosain,

Kashiramka,

Chaudhry

2025

Research in International Business and Finance

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Demystifying the nexus between ownership structure and performance: A study of the emerging market

Debnath

Dey

Mazumdar

et al. 2022

CBSR

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The main aim of this research is to study the effect of ownership structure (OS) on corporate performance after the application of the Companies Act, 2013 considering fast-moving consumer goods (FMCG) sector firms listed on the Bombay Stock Exchange. This study applies the regression technique on panel data for five years, from FY 2015–2016 to FY 2019–2020. The study has used market-based performance (market capitalization) and accounting-based performance (return on capital employed) as dependent variables to investigate the impact of OS (ownership concentration (OC) and owners’ identity (OI)) on firm performance. The findings demonstrate that OC measured by Hirschman–Herfindahl index (HHI) proposed by Demsetz and Lehn (1985) has a significant positive impact on accounting and market-based performance. The comparative analysis revealed that OI has a more significant impact on market-based performance than accounting performance. The result further reported that promoter ownership, institutional ownership, and body corporate holdings positively correlate with market-based performance. This study contributes to the existing corporate governance literature by evaluating the nexus between OS and corporate performance in the Indian context and enriches the existing literature, which will be important input for regulators, investors, and policymakers to take an informed decision. The study symbolizes the emerging market, one of the most attractive destinations for cross-country capital investment where corporate ownership structure differs from developed markets.

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Impact of Ownership Structure on Dividend Policies of Indian Non-Financial Firms

Cited by 3 publications

References 0 publications

Effect of Ownership Structure on Dividend Policy of Listed Firms at the Nairobi Securities Exchange

Effect of Ownership Structure on Dividend Policy of Listed Firms at the Nairobi Securities Exchange

Signaling vs. agency theory: What drives dividends of promoter-owned firms during a crisis?

Demystifying the nexus between ownership structure and performance: A study of the emerging market

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