Ownership structure and market power as determinants of corporate dividend policy in Saudi Arabia

• Main Author: Altoumy, Sonoussi Abdussalam Sonoussi Ali
• Format: Thesis
• Language: English; English
• Published: 2015
• Subjects: HG Finance
• Online Access: http://etd.uum.edu.my/5097/

This study investigates the relationship between ownership structure, market power, and dividend policy for listed companies on Saudi stock exchange over the period 2009 to 2013. The study examines the roles of managerial ownership, individual ownership, concentrated ownership, and foreign ownership and firm's market power in influencing dividend payout. Data of this study has been analyzed using Ordinary Least Square (OLS) regression. F-value revealed that all these five independent variables namely, managerial, individual, foreign, concentrated ownership, and market power, collectively explains the dependent variable by 40.91 percent. This study finds that concentrated ownership has significant and positive relationship with the dividend payout while the relationship between market power and dividend payout is significant but negative. On the other hand, managerial, individual, and foreign ownership has insignificant relationship with dividend payout