The Impact of Ownership Structure on Dividend Policy of Listed Companies in Srilanka: With Special Reference to the Banks Finance and Insurance Sector

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Sinthuja Sinnarajah
Sinthuja Sinnarajah

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The Impact of Ownership Structure on Dividend Policy of Listed Companies in Srilanka: With Special Reference to the Banks Finance and Insurance Sector Banner
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This paper aims at providing the reader with a comprehensive understanding of the relationship between the ownership structure and dividend policy. For the purpose of this research, sample consists of a panel of 30 Bank Finance and Insurance companies listed in Colombo stock exchange and period of 5 years, from 2011 to 2015. To analyze the impact of the different ownership structure on dividend payout policies of Sri Lankan listed companies, a multiple regression model is performed. The regression results indicate that only two hypotheses are supported, while two hypotheses are accepted. The research’s findings indicate a significant negative relationship between the institutional ownership and dividend per share and significant positive relationship between foreign ownership and the dividend per share, while insignificant positive relationship between the concentrated ownership and dividend per share Control variable ROE, Firm size, and FGO indicate an insignificant association with DPS.

18 Cites in Articles

References

  1. (2011). The Econometric Society Annual Reports. Econometrica Referees 2013-2014.
  2. A Gunathilaka,P Gunaratne (2009). Ownership structure and dividend policy in SriLanka.
  3. La Porta,R Lopez-De-Silanes,F Shileifer,A Vishny,R (2000). Agency Costs Dividend policies around the world.
  4. K Priya,P Nimalathasan (2013). Dividend Policy Ratios and firm Performance: a case study of Selected Hotels & Restaurants in SriLanka: Research Repository @ university of Jaffna.
  5. T Velnampy,R Kajananthan (2013). Cash Position and Profitability of Telecommunication Sector in Srilanka.
  6. T Velnampy,Nimalathasan,K Kalaiarasi (2014). Dividend Policy and Firm Performance: Evidence from the Manufacturing Companies Listed on the Colombo stock exchange.
  7. Omneya Abdelsalam,Ahmed El‐masry,Sabri Elsegini (2008). Board composition, ownership structure and dividend policies in an emerging market.
  8. Teerawoot Teerachotmongkol (2012). Ownership structure and dividend policy of Thai firms.
  9. H Ahmad,A Javid (2010). The Ownership Structure and Dividend Payout Policy in Pakistan (Evidence from Karachi Stock Exchange 100 Index).
  10. J Ang,R Cole,J Lin (2000). Agency Costs and Ownership Structure.
  11. N Bhattacharyya (2007). Dividend Policy: A Review.
  12. Claire Crutchley,Robert Hansen (1989). A Test of the Agency Theory of Managerial Ownership, Corporate Leverage, and Corporate Dividends.
  13. F Easterbrook (1984). Two Agency Cost Explanations of Dividends.
  14. J Elston,R Hofler,J Lee (2011). Institutional Ownership as A Predictor of Dividend Policy of Commercial Banks in Kenya.
  15. Swee Foong,Nadisah Zakaria,Hui Tan (2007). FIRM PERFORMANCE AND DIVIDEND-RELATED FACTORS: THE CASE OF MALAYSIA.
  16. M Gharaibeh,Z Zurigat,K Harahsheh (2013). The Effect of Ownership Structure on Dividend Policy in Jordanian Companies.
  17. M Gordon (1963). OPTIMAL INVESTMENT AND FINANCING POLICY*.
  18. Kimie Harada,Pascal Nguyen (2011). Ownership concentration and dividend policy in Japan.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Sinthuja Sinnarajah. 2020. \u201cThe Impact of Ownership Structure on Dividend Policy of Listed Companies in Srilanka: With Special Reference to the Banks Finance and Insurance Sector\u201d. Global Journal of Management and Business Research - F: Real estate, Event, Tourism Management & Transporting GJMBR-F Volume 20 (GJMBR Volume 20 Issue F3): .

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GJMBR Volume 20 Issue F3
Pg. 11- 19
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-F Classification: JEL Code: L85
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v1.2

Issue date

December 12, 2020

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English

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This paper aims at providing the reader with a comprehensive understanding of the relationship between the ownership structure and dividend policy. For the purpose of this research, sample consists of a panel of 30 Bank Finance and Insurance companies listed in Colombo stock exchange and period of 5 years, from 2011 to 2015. To analyze the impact of the different ownership structure on dividend payout policies of Sri Lankan listed companies, a multiple regression model is performed. The regression results indicate that only two hypotheses are supported, while two hypotheses are accepted. The research’s findings indicate a significant negative relationship between the institutional ownership and dividend per share and significant positive relationship between foreign ownership and the dividend per share, while insignificant positive relationship between the concentrated ownership and dividend per share Control variable ROE, Firm size, and FGO indicate an insignificant association with DPS.

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The Impact of Ownership Structure on Dividend Policy of Listed Companies in Srilanka: With Special Reference to the Banks Finance and Insurance Sector

Sinthuja Sinnarajah
Sinthuja Sinnarajah

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