文章基本信息

标题：Investors power and the dividend cost minimization model: Which one better explains the dividend policy in Pakistan?
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作者：Fahad Abdullah ; Attaullah Shah ; Abdullah M. Iqbal 等
期刊名称：African Journal of Business Management
印刷版ISSN：1993-8233
出版年度：2011
卷号：5
期号：26
页码：10747-10759
DOI：10.5897/AJBM11.450
语种：English
出版社：Academic Journals
摘要：This paper posits that the relevance and indeed the assumptions of the dividends cost minimization model are restricted to those countries where shareholders rights are well protected. Alternatively, we propose an “investor power” hypothesis, which is closely akin to the La Porta et al. (2000) “outcome hypothesis”. Our hypothesis states that the determining factor of dividends payout in a weak legal system is not the minimization of agency costs, instead it is the presence of certain powerful outside investors who can force firms to pay out dividends. Using two variants of the dividends cost minimization model and a modified version of the dividends partial adjustment model on a data set for 183 Pakistani listed firms, our results partially support the investor power hypothesis. Results of the mean-comparison tests as well as the regression models show that dividend-payout ratio decreases with the ownership percentage of individual shareholders and the incumbent managers. Our empirical results indicate that there is only weak evidence that institutional investors can force managers to pay dividends. Among the other variables, dividend payout ratio increases with the size of a firm and ownership percentage of associated companies, and decreases with financial leverage, coefficient of variation of net income, and growth opportunities.
关键词：Ownership structure; dividend policy; investors’ power; cost minimization model of dividend