Assessing Relationship Among Managerial Ownership, Leverage and Dividend Policy: Evidence From Pakistani Listed Firms in PSX 100 Index

The aim of this study is to investigate the relationship between the managerial ownership, leverage and dividend Payout. The analysis is performed using GMM estimation on a sample of 40 non-financial listed Firms of Pakistan stock exchange for the period 2010–2016. The results show that there is negative association between Managerial ownership and Leverage, Positive association between Managerial ownership and Dividend payout. Leverage and Dividend payout has negative association. However, conflicting to expectations, managerial ownership is found to have positive impact on dividend. It means that companies with higher levels of managerial holdings are consciously choosing higher level of dividends. Keywords: Managerial Ownership, Leverage and Dividend Policy.

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Effect of Dividend Policy on Stock Price Volatility in Nigeria Stock Exchange

International Journal of Accounting and Financial Reporting ◽

10.5296/ijafr.v9i2.11861 ◽

2019 ◽

Vol 9 (2) ◽

pp. 219

Author(s):

Felix Ebun Araoye ◽

Akinola Michael Aruwaji ◽

Emmanuel OlusuyiAjayi

Keyword(s):

Stock Price ◽

Dividend Policy ◽

Positive Impact ◽

Stock Exchange ◽

Panel Data Analysis ◽

Price Volatility ◽

Share Price ◽

Dividend Payout ◽

Share Prices ◽

Duration Effect

This paper seeks to determine the effect of dividend policy and dividend payment on share price volatility in Nigeria. Several literatures have showed evidence that dividend policy vary inversely proportional with share price volatility with duration effect. The study used data from the actively trading companies listed in the Nigeria Securities Exchange for a period of ten (10) years from 2005–2014. The estimation is based on panel data analysis between dividend policy measures (dividend payout, dividend per share, earnings after tax, dividend declared and number of share) and Share price volatility. The findings from the random effects regression results showed dividend per share is the major determinants of share price volatility in NSE (β = 0.6870, ρ<0.05). Dividend payout ratio negatively affect share price volatility (β =0.612, ρ>0.05) and earnings after tax negatively affect share price volatility (β =0.038, ρ>0.05).Thus, the higher the payout ratio the less the share price volatility, and the higher the earnings after tax lower the share price volatility. In conclusion, dividend per share has positive effect and inclusive relationship with market share prices. It is recommended that firms should try and improve on their financial performance that will enable consistent increase in the dividend per share for positive impact on market value.

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Managing Earnings V/S Strategizing Dividends: Sectoral Evidence from Pakistan Stock Exchange

DeReMa (Development Research of Management) Jurnal Manajemen ◽

10.19166/derema.v13i2.1049 ◽

2018 ◽

Vol 13 (2) ◽

pp. 218

Author(s):

Farhan Ahmed ◽

Javed Ahmed

Keyword(s):

Dividend Policy ◽

Oil And Gas ◽

Positive Impact ◽

Stock Exchange ◽

Earning Management ◽

Annual Data ◽

Dividend Payment ◽

Relationship Of ◽

The Relationship ◽

Bahasa Indonesia

This paper means to inspect the regression between the Price to Book ratio as a proxy for earning management and payout proportion as a proxy to dividend policy. This paper utilizes multivariate analysis to examine the relationship between the price to book ratio and dividend policy. Using 11 years’ annual data from 2006-2016, this paper delivers new confirmation demonstrating that timely payment of dividend has a positive impact on the reputation of the company in the market. Dividend payment boosts up investors’ confidence to invest in the company. This study helps the corporate superintendents and stock financial experts to focus on the relationship of the dividend. No past review has handled the issue of the contingent relationship between the price to book ratio and payout proportion in Pakistani Industry and specifically on cement, food and oil and gas sectors.Abstrak dalam Bahasa Indonesia : Tulisan ini bermaksud untuk meneliti regresi antara Price to Book Ratio sebagai proksi untuk manajemen penghasilan dan proporsi pembayaran sebagai proksi untuk kebijakan dividen.Penelitian ini menggunakan analisis multivariat untuk menguji hubungan antara Price to Book Ratio dan kebijakan dividen. Dengan menggunakan data tahunan selama 11 tahun dari 2006-2016, artikel ini memunculkan suatu konfirmasi yang menunjukkan bahwa pembayaran dividen tepat waktu memiliki dampak positif pada reputasi perusahaan di pasar. Pembayaran dividen meningkatkan kepercayaan investor untuk berinvestasi di perusahaan. Studi ini membantu pengawas perusahaan dan ahli keuangan saham untuk fokus pada hubungan dividen. Belum ada penelitian sebelumnya yang menangani masalah hubungan kontingen antara Price to Book Ratio dan proporsi pembayaran dalam Industri di Pakistan dan khususnya pada sektor semen, pangan dan minyak dan gas.

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The Impact of Financial Structure Towards Performance of Non-Financial Companies Listed on Amman Stock Exchange

Management and Accounting Review (MAR) ◽

10.24191/mar.v20i01-04 ◽

2021 ◽

Vol 20 (1) ◽

pp. 61-83

Author(s):

Laith Fouad Alshouha ◽

◽

Wan Nur Syahida Wan Ismail ◽

Mohd Zulkifli Mokhtar ◽

Nik Mohd Norfadzilah Nik Mohd Rashid ◽

...

Keyword(s):

Firm Performance ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Financial Structure ◽

Managerial Ownership ◽

Data Set ◽

Amman Stock Exchange ◽

The Impact ◽

The Relationship

The purpose of the current study was to investigate the relationship between financial structure towards the financial performance of companies listed on Amman stock exchange (ASE) as one of the emerging economies. This paper adopted a panel data set of 88 non-financial companies listed on the ASE over a period of 10 years from 2009 to 2018. According to empirical results that there is significant evidence to support the fact that debt repaying ability (DRAB), managerial ownership (MANOW), and foreign ownership (FOROW) are positively related to firm performance. Otherwise, the findings revealed no evidence to support the impact of the financial structure ability (FSA) towards firm performance. Moreover, the findings support the fact that firm size (SIZ) has a positive impact on firm performance of companies listed on the ASE. On the other hand, (AGE) has a negative impact on firm performance, while (GROWTH) has no impact on firm performance. The current study encourages managers to maintain a good percentage of debt repaying ability and owners to grant shares as managers’ incentives, and also to attract foreign investors. Future studies, should try applying the current study on the financial sector.

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PENGARUH STRUKTUR KEPEMILIKAN TERHADAP KEBIJAKAN DIVIDEN PADA PERUSAHAAN MANUFAKTUR

Jurnal Economia ◽

10.21831/economia.v12i2.11114 ◽

2016 ◽

Vol 12 (2) ◽

pp. 167

Author(s):

Evy Sumartha

Keyword(s):

Regression Analysis ◽

Ownership Structure ◽

Dividend Policy ◽

Control Variable ◽

Institutional Ownership ◽

Managerial Ownership ◽

Company Size ◽

Dividend Payout ◽

Negative Effect ◽

The Relationship

Abstrak: Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur. Struktur kepemilikan sebagai variabel independen dalam penelitian ini diproksikan dengan kepemilikan institusional dan kepemilikan manajerial. Penelitian ini juga untuk mendapatkan bukti mengenai fungsi moderasi dari konsentrasi kepemilikan dalam hubungan antara struktur kepemilikan dan kebijakan dividen. Variabel dependen adalah kebijakan dividen yang diukur dengan Dividend Payout Ratio (DPR). Sampel yang diperoleh sebanyak 97 perusahaan selama tahun pengamatan. Pengujian hipotesis dilakukan dengan Moderating Regression Analysis dan analisis regresi data panel. Hasilnya menunjukkan bahwa konsentrasi kepemilikan berfungsi sebagai variabel moderating pada hubungan antara struktur kepemilikan dan kebijakan dividen. Untuk kepemilikan institusional pada perusahaan yang tidak mempunyai kepemilikan manajerial berpengaruh negatif terhadap Dividend Payout Ratio, sedangkan kepemilikan institusional pada perusahaan yang mempunyai kepemilikan manajerial berpengaruh positif. Kepemilikan manajerial berpengaruh positif terhadap Dividend Payout Ratio. Variabel kontrol profitabilitas dan ukuran perusahaan berpengaruh pula terhadap kebijakan dividen perusahaan. Kata Kunci: konsentrasi kepemilikan, kepemilikan institusional, kepemilikan manajerial, ROA, ukuran perusahaan, dividend payout ratio Abstract: Pengaruh Struktur Kepemilikan Terhadap Kebijakan Dividen pada Perusahaan Manufaktur Ownership structure; as independent variables in this research; is represented by institutional ownership and managerial ownership. This research also aimed to obtain evidence of moderation function of the concentration of ownership in the relationship between ownership structure and dividend policy. The dependent variable is dividend policy which is measured by Dividend Payout Ratio (DPR). There are 97 sample companies. Hypothesis testing is done by Moderating Regression Analysis (MRA) and panel regression analysis. The results of this research show that the concentration of ownership serves as a moderating variable on the relationship between ownership structure and dividend policy. Institutional ownership in companies that do not have a managerial ownership has a negative effect on Dividend Payout Ratio; while institutional ownership in companies that have a managerial ownership has a positive effect on Dividend Payout Ratio. Profitability and company size as a control variable has effect on dividend policy. Keywords: the concentration of ownership, institutional ownership, managerial ownership, ROA, company size, dividend payout ratio

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

Academic Journal of Interdisciplinary Studies ◽

10.2478/ajis-2019-0025 ◽

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.

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Impacts of Capital Structure and Dividend Policy on the Financial Performance of Listed Companies on Vietnamese Stocks Market

10.31219/osf.io/u8pd9 ◽

2021 ◽

Author(s):

Loan T. Vu ◽

Anh T. H. Vu ◽

Thao T. P. Nguyen

Keyword(s):

Dividend Policy ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Generalized Least Squares ◽

Listed Companies ◽

Dividend Yield ◽

And Performance ◽

The Impact ◽

The Relationship

This study is taken to describe the relationship between the levels of debt, dividend policy and the performance of firms listed in Vietnamese stock market. The dividend policy is proxied by the dividend yield while firm’s performance is measured by ROE, ROA, and P/E. The total number of observations is 552, collecting from 92 listed companies on Hochiminh Stock Exchange during 2012 and 2019. The analysis results from generalized least squares (GLS) models report that the choice of firm’s performance proxy affects the relationship between firm’s performance and leverage as well as dividend policy. While leverage has positive impact on ROE and ROA, it has negative impact on P/E. In contrast, dividend yield ratio is negatively correlated with ROA and P/E but positively correlated with ROE. However, the impact of debt levels on firm’s performance is independent with the choice of leverage proxy. The findings of this research are expected to provide better understanding about the connection between debt, dividend and performance of the firm that can support the managers to make relevant decisions.

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Pengaruh Profitabilitas, Leverage, dan Kepemilikan Manajerial terhadap Kebijakan Dividen dengan Likuiditas sebagai Variabel Moderasi

Jurnal Ilmu Manajemen ◽

10.26740/jim.v9n3.p1214-1226 ◽

2021 ◽

Vol 9 (3) ◽

pp. 1214-1226

Author(s):

Gilang Indra Cahyono ◽

Nadia Asandimitra

Keyword(s):

Regression Analysis ◽

Dividend Policy ◽

Stock Exchange ◽

Sampling Technique ◽

Building Construction ◽

Future Research ◽

Managerial Ownership ◽

Analysis Technique ◽

The Relationship ◽

Intervening Variables

The purpose of this study is to determine whether liquidity can be a moderating variable between the effect of profitability, leverage, and managerial ownership on dividend policy. The sample of this study consisted of 42 companies confirmed by the Indonesia Stock Exchange in property, real estate and building construction. The sampling technique used a census sample. The analysis technique uses Multiple Regression Analysis (MRA). The findings obtained are that there is no influence between profitability on dividend policy than dividend policy is influenced by leverage and managerial ownership. The relationship between profitability and managerial ownership on dividend policy fails to be moderated by liquidity. While liquidity Intervening variables strengthen the effect of profitability on dividend policy can be added to future research to account for variations in research results.

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BOARD COMPOSITION, OWNERSHIP STRUCTURE AND DIVIDEND POLICY IN PAKISTAN

Jinnah Business Review ◽

10.53369/sfjz5416 ◽

2015 ◽

Vol 03 (02) ◽

pp. 30-39

Author(s):

Usmna Azher ◽

◽

Syed Kahsif Saeed

Keyword(s):

Ownership Structure ◽

Dividend Policy ◽

Positive Impact ◽

Stock Exchange ◽

Board Composition ◽

Board Independence ◽

Dividend Payout ◽

Financial Firms ◽

The Impact ◽

Decision Board

The aim of this study was to examine the impact of board composition and ownership structure on dividend policy of the firms listed in Karachi stock exchange. For this purpose, the data of 150 non-financial firms from 2008 to 2012 was employed. This study used descriptive as well as fixed effect and logit models for the estimation purpose. Results showed that CEO Duality and ownership concentration have an insignificant impact on dividend policy. Profitability measures and institutional ownership showed a positive significant impact on both dividend payout ratio and dividend decision. Board independence showed a significant positive impact on dividend payout ratio; however, it remained insignificant in case of dividend decisions.

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FAMILY CONTROL, INSTITUTIONAL OWNERSHIP, AND DIVIDEND POLICY OF MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v9i1.8293 ◽

2019 ◽

Vol 9 (1) ◽

pp. 97

Author(s):

Muhammad Madyan ◽

Harlina Meidiaswati ◽

Nugroho Sasikirono ◽

Muhammad Hadyan Herlambang

Keyword(s):

Dividend Policy ◽

Stock Exchange ◽

Manufacturing Sector ◽

Institutional Ownership ◽

Family Ownership ◽

Manufacturing Companies ◽

Dividend Payout ◽

Family Control ◽

The Relationship ◽

Positive Effect

This study is conducted to examine the effect of family share ownership on the dividend policy of manufacturing companies in the Indonesia Stock Exchange (IDX). In this study, we also examine the moderating effect of institutional ownership on the relationship between family ownership and dividend policy. The number of observations 137 firm-years, consisting of family companies in the manufacturing sector listed on the IDX in the period 2013-2016. The test results show that family ownership has a positive effect on the dividend payout ratio. Research also shows that institutional ownership weakens the relationship between family ownership and dividend payout ratio.

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Dividend Determinant in Emerging Economy: An Empirical Evidence of Selected Manufacturing Firms of India

GBAMS- Vidushi ◽

10.26829/vidushi.v8i01.9712 ◽

2016 ◽

Vol 8 (01) ◽

Author(s):

Akash Agarwal

Keyword(s):

Special Reference ◽

Manufacturing Industry ◽

Dividend Policy ◽

Negative Impact ◽

Positive Impact ◽

Stock Exchange ◽

Research Work ◽

Free Cash Flow ◽

The Relationship ◽

Debt Policy

The current research work is an attempt to explore and identify the determinant of dividend policy with special reference to manufacturing industry of India. For this purpose, five key determinants have been identified based on the review of literature and study have been conducted on eight selected firms of Indian Manufacturing Industry listed in Bombay Stock Exchange. The study was conducted during the period of 2013 to 2015 and multiple regression analysis has been used for identifying and establishing the relationship between key determinant and its effect on dividend policy. The research revealed the significant and positive impact of free cash flow on dividend policy whereas managerial ownership has a significant but negative impact. All other independent variables such as debt policy, firm size and profitability do not have a significant effect on the dividend policy of the firm. Keeping in view the industry specific characteristic the present study is an attempt to fill the dearth of empirical evidences in field of corporate finance with special reference to emerging economies like India.

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