Content Details | NUML Online Research Repository

Title Impact of Ownership and Board Structure on Dividend Payout Under High and Low Growth Opportunities: Evidence from Textile Sector of Pakistan

Author(s) Muhammad Iltaf

Abstract Thesis title: Impact of Ownership and Board structure on Dividend payout under high and low growth opportunities; Evidence from textile sector of Pakistan The equilibrium among management and shareholders can be formed by improving the quality of corporate governance, as it can mitigate agency conflicts by compelling the management to follow an optimal dividend policy. Dividend is one of the rewards to the shareholders for their contribution in raising funds for a company and for bearing the relevant risks. The objective of this study is to examine the impact of board structure and ownership structure on dividend pay-out under high and low growth opportunities of manufacturing firms listed at Pakistan stock exchange. Board structure is measured in terms of board independence and CEO Duality, and ownership structure is measured in terms of managerial ownership, foreign ownership, institutional ownership, and minority ownership. This study used panel data of 82 manufacturing firms that covers the period of 2011 to 2016. Purposive sampling technique is applied to select firms as a sample for analysis. The firms that paid consistent dividends from 2011 to 2016 are selected from the population. After screening of data on the bases of above criteria, there were 92 firms that comply with that benchmark. After that 10 firms out of these 92 firms were excluded due to abnormality issues in the data and finally the data of 82 firms was used for the analysis. The study applied descriptive statistics, correlation and panel regression on panel data. Among random effects, fixed effects, and common effects model, fixed effects model is used to run the regression analysis. The study also applied panel unit root test to find whether the data is stationary or not. Furthermore to examine the impact of board structure and ownership structure on dividend pay-out of listed manufacturing firms under high and low growth opportunities, the data is divided into high and low growth categories. The median value of Tobin Q is used for classification of data. Firm size, debt ratio, return on asset, and Tobin Q were used as control variables in this study. The final results revealed that under high growth opportunities, all the dimensions of board and ownership structure except minority ownership are positively and significantly v related with the dividend pay-out. While under low growth opportunities only foreign ownership, board independence and minority ownership are significantly related with dividend pay-out. These findings suggest that the impact of board structure and ownership structure on dividend pay-out is more significant and positive under high growth opportunities as compared to low growth opportunities. Keywords: Board structure; Ownership structure; dividend pay-out; institutional ownership; managerial ownership; foreign ownership; minority ownership; CEO Duality; board independence.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2018-11-12

Subject Finance

Publisher

Contributor(s)

Format APA

Identifier

Source

Relation

Coverage

Rights Reserved