Role of Ownership Concentration and Dividend Policy on Firm Performance
Open Access
- 17 February 2020
- journal article
- Published by SEISENSE Private, Ltd. in SEISENSE Journal of Management
- Vol. 3 (2), 1-13
- https://doi.org/10.33215/sjom.v3i2.255
Abstract
Purpose- The main aim of this study is to determine the role of ownership concentration and dividend policy on the firm performance of chemical sector firms of Pakistan. Design/Methodology- This research used the secondary data collected from the annual reports of the companies listed at the Karachi Stock Exchange (KSE). However, inclusion criteria are the 26 listed firms from 2012 to 2017, giving a total of 156 observations. This study used the Generalized Least Squares Model. Findings- The findings reveal that ownership concentration has a significant positive association with firm financial performance. This stated that larger shareholders could attribute to the alignment of managerial incentives with shareholder interests. They also monitor the team very effectively and efficiently. The dividend policy has a significant positive relationship with ROA. Leverage and tangibility have a significant negative relationship with firm performance. Practical Implications- These results potentially can be relevant for policymakers and academic research as well as also helpful for managers and policymakers.Keywords
This publication has 51 references indexed in Scilit:
- How director remuneration impacts firm performance: An empirical analysis of executive director remuneration in PakistanBorsa Istanbul Review, 2019
- The Impact of Firm Size on Firms Performance in Nigeria: A Comparative Study of Selected Firms in the Building Industry in NigeriaAsian Development Policy Review, 2019
- The Impact of Corporate Board Size on Firm Performance: Evidence from Ghana and NigeriaResearch in Business and Management, 2017
- CAPITAL STRUCTURE DETERMINANTS INFLUENCE: A COMPARATIVE STUDYPublished by International Institute of Social and Economic Sciences ,2017
- Ownership Concentration, Institutional Development and Firm Performance in Central and Eastern EuropeManagerial and Decision Economics, 2015
- Same or Different? The CEO Labour Market in China's Public Listed CompaniesThe Economic Journal, 2014
- The impact of capital structure on performanceInternational Journal of Commerce and Management, 2013
- Liquidity Management and Profitability of Manufacturing Companies in NigeriaIOSR Journal of Business and Management, 2013
- Determinants of capital structureManagerial Finance, 2011
- Governance Mechanisms and Ownership in an Emerging Market: The Case of Turkish BanksEmerging Markets Finance and Trade, 2009