scholarly journals Ownership structure, firm-specific factors and payout policy: Evidence from the GCC region

2017 ◽  
Vol 15 ◽  
pp. 476-486 ◽  
Author(s):  
Husam-Aldin Nizar Al-Malkawi
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Payout Policy ◽  
Business Risk ◽  
Dividend Payments ◽  
Specific Factors ◽  
Firm Maturity ◽  
Practical Implications

This paper draws on the author’s previously published works. The purpose of this study is to examine the effect of ownership structure and firm-specific factors on the payout policy of firms listed on the largest stock market in the Gulf Cooperation Council (GCC) region namely the Saudi Stock Exchange (SSE). The paper uses a balanced panel dataset of 69 nonfinancial companies (552 firm-year observations) and employs the random effects Tobit specification. The results show that government, institutional and family ownership positively influence dividend payments in Saudi Arabia. Furthermore, dividend payments are positively associated with firm-specific factors such as profitability, firm size and firm maturity but negatively related to business risk and leverage. The findings are consistent with the agency costs and reputation hypotheses. The paper provides some practical implications for the Capital Market Authority of Saudi Arabia (CMA), corporations and investors.

The impact of board composition and ownership structure on dividend payout policy: evidence from Saudi Arabia

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helmi A. Boshnak
Keyword(s):  
Saudi Arabia ◽  
Ownership Structure ◽  
Dividend Policy ◽  
Payout Policy ◽  
Board Composition ◽  
Dividend Payout ◽  
Content Type ◽  
Listed Firms ◽  
Propensity To Pay ◽  
The Impact

PurposeThis study examines the impact of board composition and ownership structure variables on dividend payout policy in Saudi Arabian firms. In particular, it aims to determine the effect of board size, independence and meeting frequency, in addition to chief executive officer (CEO) duality, and state, institutional, managerial, family, and foreign ownership on both the propensity to pay dividends and dividend per share for Saudi-listed firms over the period 2016–2019.Design/methodology/approachThe paper captures dividend policy with two measures, propensity to pay dividends and dividend per share, and employs a range of regression methods (logistic, probit, ordinary least squares (OLS) and random effects regressions) along with a two-stage least squares (2SLS) model for robustness to account for heteroscedasticity, serial correlation and endogeneity issues. The data set is a large panel of 280 Saudi-listed firms over the period 2016 to 2019.FindingsThe results underline the importance of board composition and the ownership structure in explaining variations in dividend policy across Saudi firms. More specifically, there is a positive relationship between the propensity to pay dividends and board-meeting frequency, institutional ownership, firm profitability and firm age, while the degree of board independence, firm size and leverage exhibit a negative relation. Further, dividend per share is positively related to board meeting frequency, institutional ownership, foreign ownership, firm profitability and age, while it is negatively related to CEO duality, managerial ownership, and firm leverage. There is no evidence that family ownership exerts an impact on dividend payout policy in Saudi firms. The findings of this study support agency, signalling, substitute and outcome theories of dividend policy.Research limitations/implicationsThis study offers an important insight into the board characteristic and ownership structure drivers of dividend policy in the context of an emerging market. Moreover, the study has important implications for firms, managers, investors, policymakers, and regulators in Saudi Arabia.Originality/valueThis paper contributes to the existing literature by providing evidence on four board and five ownership characteristic drivers of dividend policy in Saudi Arabia as an emerging stock market, thereby improving on less comprehensive previous studies. The study recommends that investors consider board composition and ownership structure characteristics of firms as key drivers of dividend policy when making stock investment decisions to inform them about the propensity of investee firms to pay dividends and maintain a given dividend policy.

scholarly journals Testing Strong Form Market Efficiency of Jordanian Capital Market: Performance Appraisal of Mutual Funds a comparable study case with Saudi Arabia

2020 ◽  
Vol 16 (2) ◽  
pp. 3-15
Author(s):  
Mazen Bustanji
Keyword(s):  
Saudi Arabia ◽  
Performance Appraisal ◽  
Mutual Funds ◽  
Capital Market ◽  
Stock Exchange ◽  
Market Price ◽  
Strong Form ◽  
Monthly Data ◽  
Amman Stock Exchange ◽  
Modelling Techniques

This paper analyses the strong-form efficiency of the capital market in Jordan by evaluating the performance of mutual funds over the period from 2011 to 2016, and compare it with the situation in Saudi Arabia using the Jensen modelling techniques. These tests were applied on monthly data. Results from the study show that there is no evidence of the strong-form of efficiency in either the Amman Stock Exchange or in the Saudi Arabia capital market. Therefore, investors in the Amman Stock Exchange and Saudi Arabia capital market cannot predict stocks prices or returns in the short term; with regard to firms, it suggests that the securities of firms cannot outperform the market and present market price is to a certain extent a true reflection of the present situation of their securities, in addition there is lack number availability of the mutual funds in Jordan.

FAKTOR-FAKTOR YANG MEMPENGARUHI STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA TAHUN 2008-2010

2014 ◽  
Vol 3 (2) ◽  
Author(s):  
Ruflah M Daud
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Capital Market ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Fiscal Year ◽  
Company Size ◽  
Sampled Data ◽  
Manufacturing Companies

This study aimed to examine and analyze the effect of liquidity, profitability, company size and ownership structure on capital structure in companies listed in Indonesia Stock Exchange from 2008-2010. The population of this research is all manufacturing companies listed in Indonesia Stock Exchange for the period 2008-2010 and published financial statements on December 31 for the fiscal year 2008-2010. This was a censuses research since all population sampled. Data used in this research is secondary data in the form of financial statements in the Indonesia Stock Exchange (IDX) 2008-2010. Data collection was done by the documentation and classifies data based on the financial statements of the criteria determined. Data  required in this research obtained from the Indonesian Capital Market Directory (ICMD) and the Capital Market Reference Center (PRPM) to address the Indonesia Stock Exchange Building Tower 2 1st Floor, Sudirman street Lot 52-53 Jakarta 12190. Based on these criteria, 114 companies obtained to be the target of Population.The results of this study indicate that both simultaneously, liquidity, profitability, company size, and ownership structure affect firm capital structure. Partially, variable profitability and ownership structure has a positive effect, while the variable size of the companiy’s and liquidity negative affect the capital structure of the manufacturing companies listed in Indonesia Stock Exchange from 2008-2010.  Keywords: Liquidity, Profitability, Company Size and Ownership Structure, Capital Structure

scholarly journals The Relationship between Ownership Structure and Dividend Policy: An Application in Vietnam Stock Exchange

2019 ◽  
Vol 8 (2) ◽  
pp. 131-146
Author(s):  
Thi Xuan Anh Tran ◽  
Quoc Tuan Le
Keyword(s):  
Ownership Structure ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Payout Policy ◽  
Ownership Concentration ◽  
H Index ◽  
Dividend Payout ◽  
Listed Firms ◽  
Ownership Composition ◽  
The Relationship

Abstract This research examines the possible association between ownership structure and Vietnam listed companies’ dividend payout policy over the period of 2009 – 2015. We have investigated 642 listed firms in Hochiminh stock exchange and Hanoi stock exchange, using pannel data analysis. Ownership structure is described with two main sub-variables: ownership concentration and ownership composition. Specifically, the Herfindahl index (or H-index) was applied to measure the level of ownership concentration /dispersion for all major shareholders in the company, including the five biggest investors, corporate institutional investors, the ownership concentration level, and foreign investors. It has been observed that the H-index of all major shareholders has an average of less than 0.5 but the value of the H-index of institutional investors at 0.594 indicates that institutional investors are more likely to be concentrated in the hands of large institutional investors. The result showed linear relationship between institutional ownership and the dividend rate, but not statistically significant for the relationship between managerial ownership and dividend payout ratio.

scholarly journals Menakar Struktur Kepemilikan Saham dan Kinerja Perusahaan

2020 ◽  
Vol 17 (3) ◽  
pp. 457
Author(s):  
Mayroza Wiska
Keyword(s):  
Ownership Structure ◽  
Capital Market ◽  
Regression Coefficient ◽  
Stock Exchange ◽  
Positive Influence ◽  
Regression Coefficients ◽  
Public Ownership ◽  
Test Analysis ◽  
Mining Company ◽  
Normality Test

ABSTRACTAnalysis of Performance Shareholding Structure of the Company (a mining company listed on the Indonesia Stock Exchange. In preparation of this paper, the authors have conducted research on the Indonesia Stock Exchange (Capital Market Information Center-Padang) Jl.Pondok 90 Padang. The purpose of this study was to determine the effect of ownership structure on corporate performance in the mining company listed on the Indonesia Stock Exchange (BEI. The analysis in this research using descriptive statistics, classic assumption test (test mulitikolonieritas, autokolerasi test, normality test), analysis of regression coefficient test, partial regression coefficients (t test), testing regression coefficients together (test f). As for the overall analysis of this data with the help of a software program SPSS version 21.0 for Windows. Results of this study concluded that: (1) public ownership structure positively affects the performance of companies in the mining company listed on the Indonesia Stock Exchange (BEI). (2) The structure of stock ownership is not a positive influence on the company's performance in the mining company listed on the Indonesia Stock Exchange (BEI). (3) The structure of public ownership and foreign ownership together affect the company's performance in the mining company listed on the Indonesia Stock Exchange (BEI).

scholarly journals PENGARUH UKURAN PERUSAHAAN, RESIKO BISNIS DAN PERTUMBUHAN AKTIVA TERHADAP STRUKTUR MODAL PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BEI TAHUN 2005-2007

2017 ◽  
pp. 52-63
Author(s):  
Joana L. Saragih
Keyword(s):  
Capital Structure ◽  
Ownership Structure ◽  
Random Sampling ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Simultaneous Test ◽  
Independent Variable ◽  
The Capital Structure

A decision on a capital structure (ratio between share and loan capitals) done by a financial manager is an important decision. This is due to its influence upon risks undergone and profits expected by shareholders. These analyses are used to solve the problem which is whether the size of the firm, the business risks, the growth of assets, the profitability and the ownership structure influence the capital strusture or not? The population in this research is the go public manufacturing sector in the Indonesia Stock Exchange for years 2005 until 2007. The sample is defined by cluster propotional random sampling to get a representative sample on each sector. There are 33 go public manufacturing companies selected as sample for this research. There are two variables in this research, the independent variable and dependent variable. The independent variable comprises firm size, business risk, growth of assets, and profitability; and for the dependent variable is the capital structure of go public manufacturing companies in the BEI. This research was analyzed using multiple regressions. This research found the empirical results that partially, SIZE influences positive significant and NPM influences negative significant to the capital structure of go public manufacturing companies in the Bursa Efek Indonesia. While the result of partial test for DOL and GROW showed that partially they didn’t influence significantly to the capital structure. The result for the simultaneous test showed that there is influence between SIZE, DOL, GROW, and NPM with the capital strusture of go public manufacturing companies in the Bursa Efek Indonesia. The influence is 0,197 or 19,7%. The other 80.3% influenced by another factors outside the research or the regression model.

scholarly journals EFFECT OF OWNERSHIP STRUCTURE TO DIVIDEND POLICY IN COMPANIES IN INDONESIA

2017 ◽  
Vol 13 (2) ◽  
pp. 199
Author(s):  
Farah Margaretha
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Payout Policy ◽  
Family Ownership ◽  
Private Ownership ◽  
Government Ownership ◽  
Private Companies ◽  
Dividend Payout ◽  
Ownership Structures ◽  
Study Results

The purpose of this study is to analyze the effect of ownership structure on dividend payout policy in companies listed in Indonesia Stock Exchange. In this study, there are 4 kinds of ownership structures that will be discussed, namely private ownership structure, government ownership structure, foreign ownerships structure and family ownership structure. Dividend payout policy uses DividndPayout Ratio (DPR) indicator Population of this study is all the companies listed in Indonesia Stock Exchange (IDX) 009-2011. Total samples in this study are 85 companies listed in Indonesia Stock Exchange determined by purposive sampling.  Based on the study results, from the four ownership structures, only the private ownership structure influence Parliament. The implication for investors in doing this research, the investor can choose the private ownership structure of companies. for financial managers, this study provides information specifically on private companies that one way the companies reduce the agency problem could use dividend payout policy

scholarly journals Firm Characteristics and Dividend Policy of Quoted Manufacturing Firms in Sub-Sahara Africa

2020 ◽  
pp. 50-57
Author(s):  
Ajibade, Ayodeji Temitope ◽  
Agi, Mayflowers Kysburn
Keyword(s):  
Firm Size ◽  
Ownership Structure ◽  
Financial Distress ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Manufacturing Firms ◽  
Firm Characteristics ◽  
Dividend Payout ◽  
Johannesburg Stock Exchange ◽  
Dividend Payments

The study examined the effect of firm characteristics on dividend policy in quoted manufacturing firms in Sub-Sahara Africa. Panel data were obtained from twenty (20) quoted manufacturing firms from the Nigerian Stock Exchange, Ghana Stock Exchange, Lusaka Stock Exchange, Johannesburg Stock Exchange and Nairobi Stock Exchange over a period of ten (10) years (2008-2017). The data were analyzed using both descriptive and inferential statistics. Dividend payout ratio was used as a proxy for dividend policy, while liquidity, ownership structure, firm size and leverage were used as proxies for firm characteristics. The study found liquidity to have a positive insignificant impact on dividend payout ratio; a positive insignificant impact of ownership structure on dividend payout ratio; a positive insignificant impact of firm size on dividend payout ratio; a positive significant impact of leverage on dividend payout ratio and jointly, a positive significant impact. It was therefore recommended that manufacturing firms should practice optimum working capital management in order to increase its liquidity level and diminish any likelihood of financial distress. An efficient use of its resources in order to improve performance, profitability as well as its ability to pay dividends. Investors should look out for trends in dividend payments before making investments.

scholarly journals Investigation of the association between entrepreneurship life cycle, ownership structure and market timing theory

2020 ◽  
Vol 14 (1) ◽  
pp. 107-122
Author(s):  
Lamia Mabrouk ◽  
Adel Boubaker
Keyword(s):  
Life Cycle ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Market Timing ◽  
Market Condition ◽  
Managerial Ownership ◽  
Content Type ◽  
Dummy Variable ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this study is to explore at what stage of a company’s life cycle the theory of market timing has explained debt. Drawing on a unified conceptual framework of market timing theory, the authors scrutinize the impact of life cycle and ownership structure on the market condition. Design/methodology/approach Based on a sample of 24 Tunisian companies listed on the stock exchange and 100 French firms listed on the CAC All-Tradable on a 10-year period, this paper grounded the market timing theory and attempted to clear the relation between ownership structure, life cycle of the firm and market timing theory by statistical analysis. Findings The findings of panel data modeling indicate that when the life cycle was used as an explanatory variable, it was found that the variable reflecting the market timing is not significant in either context; it means that no significant support is found in the theory of market timing in both countries. Whereas when the life cycle was used as a dummy variable, it was found that the life cycle has an impact on debt only in the Tunisian context. Practical implications This study has several important implications for researchers and practitioners. The findings reported here clarify the strength of the impact of life cycle on the market timing, when it explains the debt in the two contexts and the impact of ownership structure such as the managerial ownership and concentration of capital on debt. Originality/value This study contributes to examine the theory of debt in different phases of life cycle. Focused on the case of Tunisian and French firms, this study is unique and valuable.

scholarly journals Managerial remuneration and payout policy: evidence from Indian Regular payers

2021 ◽  
Vol 18 (1) ◽  
pp. 139-150
Author(s):  
Chandrabhanu Das ◽  
Brajaballav Kar ◽  
Manoj Kumar Jena
Keyword(s):  
Panel Data ◽  
Agency Theory ◽  
Positive Relationship ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Payout Policy ◽  
Annual Basis ◽  
Dividend Payments ◽  
Study Results

This study attempts to examine the role of managers in the associated agency theory on dividend policy decisions for firms that do not skip dividend payments. This research sample considered the firms that are listed on the Bombay Stock Exchange (BSE) and pay regular dividends on an annual basis from the financial year 2011 to 2020. Panel data econometric tools and robustness tests were carried out for model validation.The study results show that there is a higher positive relationship between change in payout ratio and managerial remuneration. Similarly, there is a large positive significance to increase manager incentive for regular payer firms with greater promoter control in higher dividend payout. Thus, this brings an agency theory perspective of rewarding well to managers to increase promoter wealth. Hence, policymakers can contemplate these findings to analyze the nexus between managers and promoters in the dividend policy of firms that never skip their dividend payments.

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