Impact of Ownership Structure on Dividend Payout Policy in Cement Industry of Pakistan

Abstract

The purpose of this study is to analyze the impact of ownership structure on dividend payout policy in Pakistan. In this study, ownership structure was used as an independent variable which is measured by Managerial ownership structure, institutional ownership structure and individual ownership structure and dividend payout policy was used as a dependent variable which is measured by dividend payout ratio. A sample of 15 companies listed in Pakistan stock exchange from 2013-2017 were selected from the cement industry in Pakistan. For the purpose of analysis descriptive statistics, Pearson’s correlation and multiple regression are used. The results reveal that institutional ownership and individual ownership have significant impact on dividend payout policy. Firm size and managerial ownership structure have insignificant impact on dividend payout.