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Dividend Policy Decisions and Ownership Concentration: Evidence from Thai Public Companies

Author

Listed:
  • J. Thomas Connelly

    (Sasin School of Management, Chulalongkorn University, Bangkok, Thailand)

  • Christian C. P. Wolff

    (University of Luxembourg, Luxembourg, Centre for Economic Policy Research (CEPR), London, United Kingdom)

Abstract

In this paper, we examine the relationship between ownership concentration and dividend policy for Thai publicly listed companies. High family ownership firms have higher dividend payouts than low family ownership firms, which we interpret to mean high family ownership firms follow a more rational dividend policy. This finding is consistent with the prediction that agency conflicts between the managers and shareholders are lower at firms with a controlling shareholder. The evidence is robust through different econometric specifications; robust when the level used to determine the extent of family ownership (family control) is lowered to 10% of the outstanding shares; and robust to the inclusion of the ownership wedge as a proxy for the severity of agency conflicts.

Suggested Citation

  • J. Thomas Connelly & Christian C. P. Wolff, 2023. "Dividend Policy Decisions and Ownership Concentration: Evidence from Thai Public Companies," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 26(01), pages 1-35, March.
    • Handle: RePEc:wsi:rpbfmp:v:26:y:2023:i:01:n:s0219091523500066
    DOI: 10.1142/S0219091523500066
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    More about this item

    Keywords

    Family ownership; control; payout policy; agency conflicts;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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