Block-Holders and Dividends: Evidence from Pakistan

Authors

  • Shazia Sarwar M.Phil Commerce, College of Commerce, Government College University, Faisalabad, Pakistan
  • Raheel Mumtaz College of Commerce, Government College University, Faisalabad
  • Muhammad Farooq Rehan Assistant Professor, College of Commerce, Government College University, Faisalabad, Pakistan

Keywords:

Multiple Large Shareholders, Dividend

Abstract

This study is designed to examine the effect of multiple large shareholders on dividend payouts.  We employed the data of seventy-five non-financial firms of the KSE-100 index from 2006 to 2018. Results report that the multiple large shareholders have a significant negative effect on dividend payouts. It implies that a weak legal structure supports large shareholders to expropriate wealth from the minorities. Moreover, we find that firms pay more dividends when they have a high level of profitability, larger assets, lower debt in the capital mix, and greater cash holding. Thus, our study contributes to the scant literature of block-holders and dividend payouts policy.

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Published

2021-12-30