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Ownership Concentration, Dividend Payout and Firm Performance: The Case of Malaysia

Author

Listed:
  • Irene Wei Kiong Ting

    (Faculty of Industrial Management, Universiti Malaysia Pahang)

  • Qian Long Kweh

    (Faculty of Management, Canadian University Dubai)

  • Kausalyaa Somosundaram

    (Department of Accounting, Universiti Tenaga Nasional)

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.

Suggested Citation

  • Irene Wei Kiong Ting & Qian Long Kweh & Kausalyaa Somosundaram, 2017. "Ownership Concentration, Dividend Payout and Firm Performance: The Case of Malaysia," Malaysian Journal of Economic Studies, Faculty of Business and Economics, University of Malaya & Malaysian Economic Association, vol. 54(2), pages 269-280, December.
    • Handle: RePEc:mjr:journl:v:54:y:2017:i:2:p:269-280
    DOI: 10.22452/MJES.vol54no2.6
    as

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    More about this item

    Keywords

    Agency theory; dividend payout; firm performance; ownership concentration;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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