The Effects of Ownership Structure and Board Composition on the Dividend Policy of the Listed Firms in Tehran Stock Exchange (TSE)

Document Type : Research Paper

Authors

Abstract

     Dividend policy constitutes an effective factor on shareholders wealth maximization, as the main goal of the firms. For this reason, the question of dividend policy has been one of the most important topics in corporate finance. This study investigates the effects of ownership structure and board composition on dividend policy of the firms listed in the Tehran Stock Exchange. In this regard, multiple regression is used and the effects of earning growth and previous year dividend policy is controlled. Investigations of the 77 firms from 1382 to 1386 reveal that the corporate ownership and board independence, positively and institutional ownership, negatively affect the dividend payout ratio of the firms listed in the Tehran Stock Exchange. However, no evidence confirming significant correlation between managerial ownership and ownership concentration with dividend policy is found.

Keywords

References

- ایمانی‌پور مقدم، محسن. (1377)، بررسی رابطه بین تغییرات سود تقسیمی و تغییرات سودهای آتی شرکتهای پذیرفته شده در بورس اوراق بهادار تهران، رساله کارشناسی ارشد، دانشگاه شهید بهشتی.
- جهانخانی، علی و قربانی، سعید، (1384). شناسایی و تبیین عوامل تعیین‌کننده سیاست تقسیم سود شرکتهای پذیرفته شده در سازمان بورس اوارق بهادار تهران. فصلنامه تحقیقات مالی. شماره 20.ص.  48-27.
- قالیباف اصل، حسن، (1386)، مدیریت مالی. تهران: انتشارات پوران پژوهش.
- کرمی، غلامرضا و اسکندر، هدی، (1388)، ترکیب سهام‌داران و سیاست تقسیم سود، مجله حسابدار، سال بیست و چهارم، شماره 207، ص 57-53.
- مؤمنی، منصور، (1386)، تحلیل‌های آماری با استفاده از SPSS ،  تهران: انتشارات کتاب نو.
- نمازی، محمد و کرمانی، احسان. (1387)، تأثیر ساختار مالکیت بر عملکرد شرکتهای پذیرفته شده در بورس اوراق بهادار تهران، بررسیهای حسابداری و حسابرسی، شماره 53،  ص 100-83.
- نوروش، ایرج؛ کرمی، غلامرضا و وافی ثانی، جلال، (1388)، بررسی رابطه ساز و کارهای نظام راهبری شرکت و هزینه‌های نمایندگی شرکتهای پذیرفته شده در بورس اوراق بهادار تهران. تحقیقات حسابداری. شماره اول. ص 27-4.
- نوو، ریموند، (1986)، مدیریت مالی، ج دوم، [علی جهانخانی و علی پارساییان]، تهران: انتشارات سمت. 
- Abdelsalam, O; EL-Masry, A, and Elsegini, S. (2008). Board Composition, Ownership structure and dividend policies in an emerging Market. Journal of Managerial Finance. Vol. 34, No. 12, pp. 953-964.
- Ajinkya, B; Bhojraj , S, and Sengupta, P. (2005). The association between outside directors, Institutional investors and the properties of management earning forecast. Journal of Accounting Research. Vol. 43, No. 3, pp. 343-376.
- Baker, K, and Powell, G. (2005). Understanding Financial Management. Blackwell Publishing.
- Bichara, L. (2008). Institutional Ownership and Dividend Policy: A Framework based on tax clientele, information signals and Agency costs. Ph. D Dissertation. University of  North Texas.
- Cooper, W, and Ijiri, Y. (1983). Kohler’s Dictionary for Accountants. Sixth edition. Prentice-Hall.
- D’souza, J, and Saxena, A. (1999). Agency Cost, Market Risk Investment opportunities and Dividend Policy: An International Perspective. Managerial Finance. Vol. 25, No. 6, pp. 35-43.
- Earnhart, D, and Lizal, L. (2006). Effects of Ownership and Financial Performance on Corporate Environmental Performance. Journal of Comparative Economics. Vol. 34, pp. 111-129.
- Easterbrook, F. (1984). Two Agency-Cost Explanation of Dividends. The American Economic Review. Vol. 74, No. 4, pp. 650-659.
- Fama, E. (1980). Agency problems and the theory of the firm. Journal of Political Economy. Vol. 88, No. 2, pp. 288-307.
- Farinha, J. (2003). Divided Policy, Corporate Governance and the Managerial Entrenchment Hypothesis: An Empirical Analysis. Journal of Business Finance & Accounting. Vol. 30, pp. 1173-1209.
- Gul, F, and Kealey, B. (1999). Chaebol, Investment Opportunity Set and Corporate Debt and Dividend Policies of Korean Companies. Review of Quantitative Finance and Accounting. Vol. 13, No. 4, pp. 401-416.
- Guo, W, and Ni, J. (2008). Institutional Ownership and Firm’s Dividend Policy, Corporate Ownership & Control. Vol. 5, No. 2, pp. 128-136.
- Harada, K, and Nguyen, P. (2006). Ownership Concentration, agency conflicts, and dividend policy in Japan. Working paper. [Online]. www.ssrn.com.
- Jensen, M. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. The American Economic Review. Vol. 76, No. 2, pp. 323-329.
- Jensen, G; Solberg, D, and Zorn, T. (1992). Simultaneous Determination of Insider ownership, Debt, and Dividend Policies. Journal of Financial and Quantitative Analysis. Vol. 27, No. 2, pp. 247-263.
- Karamanou, I, and  Vafeas, N. (2005). The association  between  corporate boards, audit committees, and management earning forecasts: An  empirical   analysis. Journal  of Accounting  Research. Vol. 43, No. 3, pp. 453-486.
- Kouki, M, and Guizani, M. (2009). Ownership Structure and Dividend Policy: Evidence from the Tunisian Stock Market. European Journal of Scientific Research. Vol. 25, No.1, PP. 42-53.
- Kumar, J. (2003). Does Ownership Structure Influence Firm value? Evidence form India. Working paper. [Online]. www.ssrn.com. 
- Lim, S; Matolcsy, Z, and Chow, D. (2007). The association between board  composition and different types of voluntary disclosure. European Accounting Review. Vol. 16, No. 3, pp. 555-583.
- Mancinelli, L, and Ozkan, A. (2006). Ownership structure and Dividend Policy: Evidence from Italian Firms. The European journal of Finance. Vol. 12, No. 3, pp. 265-282.
- Naceur, S; Goaied, M, and Belanes. A. (2006). On the Determinants and Dynamics of Dividend Policy. International Review of Finance. Vol. 6, No.1, pp. 1–23.
- Rose, C. (2005). Managerial Ownership and Firm Performance in Listed Danish Firms: In Search of the Missing Link. European Management Journal. Vol. 23, No. 5, pp. 542-553.
- Rozeff, M. (1982). Growth, Beta and Agency Costs as Determinants of dividend Payout Ratios. The Journal of Financial Research. Vol. 5, No.3, pp. 249-259.
- Stouraitis, A, and Wu, L. (2004). The Impact of Ownership Structure on the Dividend Policy of Japanese Firms with Free Cash Flow Problem. Working paper. [Online]. www.ssrn.com.

Files

History

  • Receive Date: 12 June 2012
  • Accept Date: 12 June 2012

Share

How to cite

Statistics