Effect of family control on corporate dividend policy of firms in Pakistan

This study examines the impact of family control on the dividend policy of firms in Pakistan, covering the period from 2009 to 2016. It also investigates whether family control moderates the impact of firm-specific factors on the dividend policy. The GMM model for panel data estimation is used. The...

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Bibliographic Details
Published inFinancial innovation (Heidelberg) Vol. 5; no. 1; pp. 1 - 13
Main Authors Yousaf, Imran, Ali, Shoaib, Hassan, Arshad
Format Journal Article
LanguageEnglish
Published Heidelberg Springer 11.11.2019
Springer Berlin Heidelberg
Springer Nature B.V
SpringerOpen
Subjects
Agency conflicts
Dividend
Dividend policy
Dividends
Economics
Economics and Finance
Expropriation
Family firm
Family owned businesses
Family ownership
Macroeconomics/Monetary Economics//Financial Economics
Minority shareholder
Political Economy/Economic Systems
Pakistan
Expropriation
Minority shareholder
Family firm
Family ownership
Agency conflicts
Dividend
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Summary:This study examines the impact of family control on the dividend policy of firms in Pakistan, covering the period from 2009 to 2016. It also investigates whether family control moderates the impact of firm-specific factors on the dividend policy. The GMM model for panel data estimation is used. The mean difference univariate analysis shows that family firms differ from nonfamily firms based on financial characteristics. The multivariate analysis shows that family firms pay lower dividends than nonfamily firms. Besides, firm size inversely affects the dividend policy, whereas tangibility positively affects it. Moreover, family control does not moderate the impact of all firm-specific factors on the dividend policy. Overall, family control, size, and tangibility are found to be the main determinants of the dividend policy in Pakistan.
ISSN:2199-4730
2199-4730
DOI:10.1186/s40854-019-0158-9