Impact of ownership structure on dividend payout in Pakistani non-financial sector

The purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that manager...

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Autores principales:	Muzammal Ilyas Sindhu, Shujahat Haider Hashmi, Ehtasham Ul Haq
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2016
Materias:	managerial ownership institutional ownership leverage firm size panel data analysis Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/a67f2faf58004e26ad8ecaa8754157b4
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spelling	oai:doaj.org-article:a67f2faf58004e26ad8ecaa8754157b42021-12-02T14:35:46ZImpact of ownership structure on dividend payout in Pakistani non-financial sector2331-197510.1080/23311975.2016.1272815https://doaj.org/article/a67f2faf58004e26ad8ecaa8754157b42016-12-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2016.1272815https://doaj.org/toc/2331-1975The purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that managerial ownership (MO) has shown significant and negative impact on DIV which indicates that as MO rise, they will prefer to retain instead of distribution. Institutional ownership is showing significant and positive behavior with DIV ratio which also showing favorable arguments for dividend distribution. Change in earnings and operating cash flows as control variables are not making variation in DIV. Further, firms having favorable firm’s value and higher firm’s size lead to distribute more dividends with good faith and reputation. Leverage and DIV ratio relationship are an indication of cash flow theory, all earnings must be distributed among shareholders while positive and favorable NPV projects must be availed through debt financing. This study provides supports to shareholders in adjusting their investment strategies because it provides information regarding dividend policies.Muzammal Ilyas SindhuShujahat Haider HashmiEhtasham Ul HaqTaylor & Francis Grouparticlemanagerial ownershipinstitutional ownershipleveragefirm sizepanel data analysisBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 3, Iss 1 (2016)
institution	DOAJ
collection	DOAJ
language	EN
topic	managerial ownership institutional ownership leverage firm size panel data analysis Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	managerial ownership institutional ownership leverage firm size panel data analysis Business HF5001-6182 Management. Industrial management HD28-70 Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq Impact of ownership structure on dividend payout in Pakistani non-financial sector
description	The purpose of this study is to analyze the impact of ownership structure on dividend payout (DIV) ratio of 100 companies related to non-financial sector listed in Karachi stock exchange for the sample period of 2011–2015. Fixed effects model as a panel data analysis technique indicates that managerial ownership (MO) has shown significant and negative impact on DIV which indicates that as MO rise, they will prefer to retain instead of distribution. Institutional ownership is showing significant and positive behavior with DIV ratio which also showing favorable arguments for dividend distribution. Change in earnings and operating cash flows as control variables are not making variation in DIV. Further, firms having favorable firm’s value and higher firm’s size lead to distribute more dividends with good faith and reputation. Leverage and DIV ratio relationship are an indication of cash flow theory, all earnings must be distributed among shareholders while positive and favorable NPV projects must be availed through debt financing. This study provides supports to shareholders in adjusting their investment strategies because it provides information regarding dividend policies.
format	article
author	Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq
author_facet	Muzammal Ilyas Sindhu Shujahat Haider Hashmi Ehtasham Ul Haq
author_sort	Muzammal Ilyas Sindhu
title	Impact of ownership structure on dividend payout in Pakistani non-financial sector
title_short	Impact of ownership structure on dividend payout in Pakistani non-financial sector
title_full	Impact of ownership structure on dividend payout in Pakistani non-financial sector
title_fullStr	Impact of ownership structure on dividend payout in Pakistani non-financial sector
title_full_unstemmed	Impact of ownership structure on dividend payout in Pakistani non-financial sector
title_sort	impact of ownership structure on dividend payout in pakistani non-financial sector
publisher	Taylor & Francis Group
publishDate	2016
url	https://doaj.org/article/a67f2faf58004e26ad8ecaa8754157b4
work_keys_str_mv	AT muzammalilyassindhu impactofownershipstructureondividendpayoutinpakistaninonfinancialsector AT shujahathaiderhashmi impactofownershipstructureondividendpayoutinpakistaninonfinancialsector AT ehtashamulhaq impactofownershipstructureondividendpayoutinpakistaninonfinancialsector
_version_	1718391090058362880

Impact of ownership structure on dividend payout in Pakistani non-financial sector

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