The relationship of ownership structure and dividend policy : Evidence from VN-100 index
Abstract
This study focuses on examining the possible relationship between dividend
payout policy and ownership structure, especially, managerial ownership and institutional
ownership in order to make investment recommendations. The study has used panel data
of thirty eight firms from the VN100-index over the period of five years ranging from 2011
to 2015. The dividend payout ratio (DPR) of companies is examined in correlation to
managerial ownership (MSO) and institutional share ownership (INST), while controlling
for leverage (LEV), return on equity (ROE), and firm size (SIZE). The study use fixed
effects model with robust standard errors to estimate and evaluate how the independent
variables impact the dependent variable. The empirical result suggested that institutional
ownership and financial leverage have significant relationships with dividend payout. The
rest of the three variables including managerial share ownership, return on equity and firm
size are found to be insignificant reaction with dividend payout ratio of selected firms listed
on VN-100 index.
Keywords: dividend policy, managerial ownership, institutional ownership.