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Left to their own devices: Ownership concentration and payout policy

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  • Choi, Heejung
  • Kim, Jong-Hoon
  • Suh, Jungwon
  • Uchida, Konari

Abstract

This study investigates the impact of concentrated ownership on payout policy in the absence of controlling families. Controlling corporate ownership is a dominant form of concentrated ownership among Japan’s listed firms. Unlike institutional investors, controlling corporations prefer within-group retention of earnings over cash distribution with greater opposition to repurchases than to dividends. Controlling corporations fend off the pressure from institutional investors for higher payouts, but there is no indication that controlling corporate ownership is detrimental to shareholder value. Our results suggest that, absent family control, concentrated ownership yields friction between the relationship-based and shareholder-oriented governance.

Suggested Citation

  • Choi, Heejung & Kim, Jong-Hoon & Suh, Jungwon & Uchida, Konari, 2026. "Left to their own devices: Ownership concentration and payout policy," Research in International Business and Finance, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:riibaf:v:81:y:2026:i:c:s0275531925004490
    DOI: 10.1016/j.ribaf.2025.103193
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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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