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

Date
2017
Authors
Ting, Irene Wei Kiong
Kweh, Qian Long
Somosundaram, Kausalyaa
Journal Title
Journal ISSN
Volume Title
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