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

Irene Wei Kiong Ting (), Qian Long Kweh () and Kausalyaa Somosundaram ()
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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

Malaysian Journal of Economic Studies, 2017, vol. 54, issue 2, 269-280

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.

Keywords: Agency theory; dividend payout; firm performance; ownership concentration (search for similar items in EconPapers)
JEL-codes: G32 L25 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mjr:journl:v:54:y:2017:i:2:p:269-280

DOI: 10.22452/MJES.vol54no2.6

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