Different levels of family ownership and dividend payout in the presence of growth opportunities

Irene, Wei Kiong Ting and Kweh, Qian Long and Norazlin, Ahmad and Paramanantham, Neshaleni S. (2021) Different levels of family ownership and dividend payout in the presence of growth opportunities. Afro-Asian Journal of Finance and Accounting, 11 (6). pp. 787-807. ISSN 1751-6455. (Published)

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This study examines the family ownership, growth opportunities, and dividend payout of a sample consisting of 200 of the largest publicly listed companies in Malaysia from 2011-2016. Three main results emerge after controlling for firm and board characteristics as well as industry and year effects in various robustness checks. First, despite their positive impacts on dividend payout, family firms exhibit a lower dividend payout relative to net income. Second, growth opportunities increase the positive impacts of family ownership on dividend payout. A positive association between growth opportunities and dividend payout is also found. Third, the moderating effect of growth opportunities on the relationship between family ownership and dividend payout is present only in firms with family shareholdings, particularly those with high and medium ownership. These findings indicate varying dividend payout in the presence of growth opportunities for the different levels of family ownership.

Item Type: Article
Uncontrolled Keywords: dividend payout, family ownership, growth opportunities, moderating effect
Subjects: H Social Sciences > HF Commerce
Faculty/Division: Faculty of Industrial Management
Institute of Postgraduate Studies
Depositing User: Noorul Farina Arifin
Date Deposited: 29 Apr 2022 08:20
Last Modified: 29 Apr 2022 08:20
URI: http://umpir.ump.edu.my/id/eprint/33942
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