Family Ownership and Dividend Policy: Evidence from India

• 영문명: Family Ownership and Dividend Policy: Evidence from India
• 발행기관: 한국유통과학회
• 저자명: Abhinav RAJVERMA Arun Kumar MISRA Gaurav KUMAR
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 9 No.9, 61~73쪽, 전체 13쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2022.10.31

영문 초록

The article examines the ownership structure and dividend payout behavior of India-listed firms using a panel regression approach. It focuses on family ownership and examines why dividend payouts of family firms differ from non-family firms. The study finds that family firms dominate and have concentrated ownership using data from the NSE-listed regular dividend-paying firms. Although family ownership concentration is high among Indian firms, these firms are not concerned about distributing cash as dividends. Instead, these firms focus on retaining and passing on control from one generation to the next. The evidence shows that family firms pay low dividends and have higher leverage than non-family counterparts. The results support the entrenchment of minority shareholders and the proposition that a high payout signals a reduction in the information asymmetry and level of risk. The study further illustrates that cash dividends tend to reduce the level of risk perceived; however, (cash dividend) leads to the deterioration firm’s liquidity and aid in the shrinking of cash among emerging market firms. The originality of the paper lies in factoring ownership concentration while explaining the dividend behaviour from an emerging markets perspective, characterized by high private benefits and weak protection for external minority shareholders.

목차

1. Introduction

2. Literature Review

3. Hypotheses Development

4. Data and Empirical Design

5. Results

6. Conclusion and Implications

References

Appendix

키워드

Dividend Policy Family Firms Ownership Structure Emerging Market