Ownership structure and cash flows as determinants of corporate dividend policy
Abstract
This paper investigates the relationship of ownership structure and cash flow toward dividend policy, using a sample of 416 companies listed on Ho Chi Minh and Ha Noi Stock Exchange within 2018. The dividend policy is predicted by dividend payout ratio which is taken as dependent variables. Ownership structure uses managerial, institutional, individual ownership percentage as proxies while cash flow uses operating cash and net cash flow for measurement. Some control variables are added into the testing model such as firm’s size, leverage and profitability. All data have been proceeding by pooled ordinary least square regression with robust standard error. Its findings show the significant positive coefficient of managerial ownership percentage on dividend payout ratio while cash flow reveals insignificant results. Also, it suggests that the board of directors should consider how much ownership percentage granting to CEOs and individual shareholders should claim higher dividend payment to offset for risk of expropriation.
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