Impact of Ownership Structure on Corporate Dividend
Policy and Performance
Muhammad Kaleem Khan
Faculty Member, Ilma University
Rashid Ali
PhD Scholar Indus University Karachi
Assistant Professor, Ilma University
Shaista Tariq
PhD Scholar Indus University Karachi
Assistant Professor, KASB Institute of Technology
Karachi
Abstract
Ownership structure and dividend policy have been the
debatable financial issue for the firms over the last
few decades. This study aims to inspect the impact of
ownership structure plus corporate dividend policy on
the firm performance of oil and gas companies listed at KSE 100 Index in Pakistan. The Panel data was composed
from the annual reports of oil and gas firms for 10
years from 2004 to 2014 on the annual basis. The Hausmen
Test was implemented to examine the random or fixed
affects, therefore the fixed affects were deployed to
examine the impact of ownership structure as well as
dividend policy on the firm performance. The results
indicate that director`s ownership and institutional
ownership does not have positive influence over the firm
performance while individual shareholder`s ownership
have positive influence over the firm performance. The
results also indicate that ownership structure; Director
Ownership, Institutional shareholder Ownership and
Individual shareholders does not have positive influence
over the corporate dividend policy.
Keywords: dividend policies, dividend compensation, cross-investing bind, managerial ownership, concentrated ownership, private benefits and family legacy
