Ownership concentration, dividend payout and firm performance : the case of Malaysia

Ting, Irene Wei Kiong; Kweh, Qian Long; Somosundaram, Kausalyaa

Ownership concentration, dividend payout and firm performance : the case of Malaysia

Date

2017

Authors

Ting, Irene Wei Kiong

Kweh, Qian Long

Somosundaram, Kausalyaa

Publisher

Malaysian Economic Association

Abstract

This study examines how ownership concentration affects dividend payout, and ultimately firm performance. Regression analyses are performed on a dataset spanning 11 years (2005-2015) among Malaysian publicly listed firms. The results show that shareholders with concentrated ownership play an important role in determining dividend payout and driving firm performance. Specifically, ownership concentration is associated with low dividend payout, but it improves firm performance. Overall, this study suggests that ownership concentration may also be an effective monitoring mechanism.

Description

This article is not available at CUD collection. The version of scholarly record of this Article is published in Malaysian Journal of Economic Studies (2017), available online at: https://doi.org/10.22452/MJES.vol54no2.6 .

Keywords

Agency theory, Dividend payout, Firm performance, Ownership concentration

Citation

Ting, I. W. K., Kweh, Q. L., & Somosundaram, K. (2017). Ownership concentration, dividend payout and firm performance: The case of Malaysia. Malaysian Journal of Economic Studies, 54(2), 269–280. https://doi.org/10.22452/MJES.vol54no2.6

URI

https://doi.org/10.22452/MJES.vol54no2.6
https://hdl.handle.net/20.500.12519/31

Collections

Accounting & Finance

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