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

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Date

2017-12

Authors

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.

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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

DOI

Collections

Accounting & Finance