Increased presence of foreign investors and dividend policy of Japanese firms

Naohiko Baba

Pacific-Basin Finance Journal, 2009, vol. 17, issue 2, 163-174

Abstract: This paper investigates the impact of the increased presence of foreign investors on the dividend policy of Japanese firms. A choice-to-pay model, estimated with a random-effects binary probit method, shows that a higher level of foreign ownership is associated with a significantly higher probability of dividend payouts. A choice-to-change model, estimated with a random-effects generalized ordered probit method, shows that a higher level of foreign ownership is associated with a significantly higher (lower) probability of an increase (no change) in dividends, while a larger 1-year increase is associated with a significantly higher (lower) probability of an increase (decrease).

Keywords: Dividend; Foreign; investors; Unobserved; heterogeneity; Generalized; ordered; probit; Random; effects (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:17:y:2009:i:2:p:163-174

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