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

Ting, Irene Wei Kiong
Kweh, Qian Long
Somosundaram, Kausalyaa
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Malaysian Economic Association
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.
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 .
Agency theory, Dividend payout, Firm performance, Ownership concentration
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