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The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey

Year 2015, Volume: 15 Issue: 4, 509 - 522, 01.11.2015

Abstract

In this study, we investigated the effect of ownership concentration on dividend payout decision. To this end, by using Random Effect Tobit Model and System Generalized Method of Moments approach we utilized the data of 116 industrial companies that are listed on the Borsa Istanbul for the period 2004-2009. The results suggest that there is a positive relationship between ownership concentration and dividend yield. In addition to concentration, firms’ profitability, leverage degree, capital expenditures and market to book value ratio also have significant impact on the dividend decision. Only considering profit distributing firms, concentration level dummy variables, profitability, market value and investment variables seems to determine the dividend rate for the company. When we divide this sample into two subgroups according to asset growth rates of the firms, dividend decisions of slow growing firms are affected by return on asset, market to book ratio as well as ownership concentration. On the other hand, ownership concentration, profitability, capital expenditures and market value are important factors for the dividend payout decisions of fast growing companies

References

  • Abdullah, N.M.H., Ahmad, Z. ve Roslan, S. (2012) “The Influence of Ownership Structure on the Firms Dividend Policy Based Lintner Model” International Review of Business Research Papers, 8(6): 71-88.
  • Ahmed, H. ve Javid, A.Y. (2009) “The Determinants of Dividend Policy in Pakistan” International Research Journal of Finance and Economics, 29: 110-125.
  • Al-Shubiri, F.N., Al Taleb, G. ve Al-Zoued, A.A. (2012) “The Relationship between Ownership Structure and Dividend Policy: An Empirical Investigation” Review of International Comparative Management, 13(4): 644-657.
  • Arellano, M. ve Bond, S. (1991) “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations” The Review of Economic Studies, 58(2): 277-297.
  • Arellano, M. ve Bover, O. (1995) “Another Look at the Instrumental Variable Estimation of Error-Components Models” Journal of Econometrics, 68(1): 29-51.
  • Baltagi, B.H. (2001) “Econometric Analysis of Panel Data” John Wiley and Sons Inc. UK, Chichester. Berle, A.A. ve Means, G. C. (1932). “The Modern Corporation and Private Property” New York, Amerika Birleşik Devletleri: Macmillan.
  • Black, F. (1976) “The Dividend Puzzle” Journal of Portfolio Management, 2(2): 115-143.
  • Bøhren, Ø., Josefsen, M.G. ve Steen, P.E. (2012) “Stakeholder Conflicts and Dividend Policy” Journal of Banking and Finance, 36(10): 2852-2864.
  • Bradford, W., Chen, C. ve Zhu, S. (2013) “Cash Dividend Policy, Corporate Pyramids, and Ownership Structure: Evidence from China” International Review of Economics and Finance, 27: 445-464.
  • Chen, Z., Cheung, Y., Stouraitis, A. ve Wong, A.W. (2005) “Ownership Concentration, Firm Performance, and Dividend Policy in Hong Kong” Pacific-Basin Finance Journal, 13: 431-449.
  • Demsetz, H. (1983) “The Structure of Ownership and the Theory of the Firm” Journal of Law and Economics, 26(2): 375-390.
  • Demsetz, H. ve Lehn, K. (1985) “The Structure of Corporate Ownership: Causes and Consequences” Journal of Political Economy, 93(6): 1155-1177.
  • Easterbrook, F.H. (1984) “Two Agency Cost Explanations of Dividends” The American Economic Review, 74(4): 650-659.
  • Faccio, M., Lang, L.H. ve Young, L. (2001) “Dividend and Expropriation” The American Economic Review, 91(1): 54-78.
  • Fama, E.F. ve French, K.R. (2002) “Testing TradeOff and Pecking Order Predictions about Dividends and Debt” The Review of Financial Studies, 15(1): 1-33.
  • Farinha, J. (2003) “Dividend Policy, Corporate Governance and the Managerial Entrenchment Hypothesis: An Empirical Analysis” Journal of Business Finance & Accounting, 30(9-10): 1173-1209.
  • Gharaibeh, M., Zurigat, Z. ve Al-Harahsheh, K. (2013) “The Effect of Ownership Structure on Dividends Policy in Jordanian Companies” Interdisciplinary Journal of Contemporary Research in Business, 4(9): 769-796.
  • Gugler, K. (2003) “Corporate Governance, Dividend Payout Policy, and the Interrelation between Dividends, R&D, and Capital Investment.” Journal of Banking & Finance, 27(7): 1297-1321.
  • Gugler, K. ve Yurtoglu, B. (2003) “Corporate Governance and Dividend Pay-Out Policy in Germany” European Economic Review, 47(4): 731-758.
  • Gul, F.A. (1999) “Government Share Ownership, Investment Opportunity Set and Corporate Policy Choice in China” Pacific-Basin Finance Journal, 7(2): 157-172.
  • Gürsoy, G. and Aydoğan, K., (1999), “Equity Ownership Structure, Risk-Taking and Performance: An Empirical Investigation in Turkish Companies” International Global Finance Conference, 1998, Istanbul ve ERC/ METU International Conference in Economics, 1999, Ankara. http://www.bilkent.edu.tr/~aydogan/OwnershipStructure.pdf
  • Habibi, S., Talebnia, G. ve Dost, M.F. (2012) “The Relationship between Ownership Concentration, Financial Performance and Profit Distribution Policy” Trends in Social Science, 5(1): 64-71.
  • Harada, K. ve Nguyen, P. (2006) “Ownership Concentration, Agency Conflicts, and Dividend Policy in Japan” (SSRN No: 953433). Retrieved 2014, July 17, from http://ssrn.com/abstract=953433
  • Holderness, C.G. (2003) “A Survey of Blockholders and Corporate Control” Economic Policy Review, 9(1): 51-64.
  • Hsiao, C. (2003) “Analysis of Panel Data” Cambridge, Birleşik Krallık: Cambridge University Press.
  • Jensen, M.C. (1986) Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers” The American Economic Review, 76(2): 323-329.
  • Jensen, M.C. ve Meckling, W.H. (1976) “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure” Journal of Financial Economics, 3(4): 305-360.
  • Khan, T. (2006) “Company Dividends and Ownership Structure: Evidence from UK Panel Data” The Economic Journal, 116(510): 172-189.
  • La Porta, R., Lopez-De-Silanes, F., Shleifer, A. ve Vishny, R. (2000) “Agency Problem and Dividend Policies around the World” Journal of Finance, 55(1): 1-33.
  • Mancinelli, L. ve Özkan, A. (2006) “Ownership Structure and Dividend Policy: Evidence from Italian Firms” The European Journal of Finance, 12(3): 265-282.
  • Maury, C. B. ve Pajuste, A. (2002) “Controlling Shareholders, Agency Problems, and Dividend Policy in Finland” Stockholm School of Economics No. LTA 1/02. Retrieved 2014, October 10, from http://lta.hse. fi/2002/1/lta_2002_01_a1.pdf
  • Mehrani, S., Moradi, M. ve Eskandar, H. (2011) “Ownership Structure and Dividend Policy Evidence from Iran” African Journal of Business Management, 5(17): 7516-7525.
  • Miller, M. H. ve Modigliani, F. (1961). “Dividend Policy, Growth, and the Valuation of Shares” The Journal of Business, 34(4): 411-433.
  • Ramli, N.M. (2010) “Ownership Structure and Dividend Policy: Evidence from Malaysian Companies” International Review of Business Research Papers, 6(1): 170-180.
  • Rezaloie, A., Zariean, M. ve Bjarkenari, M.A. (2013) “Relationship between Ownership Structure and Dividend Policy in Iran” International Research Journal of Applied and Basic Sciences, 4(7): 1984-1990.
  • Rozeff, M.S. (1982) “Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios” Journal of Financial Research, 5(3): 249-259.
  • Schooley, D.K. ve Barney, L.D. (1994) “Using Dividend Policy and Managerial Ownership to Reduce Agency Costs” The Journal of Financial Research, 17(3): 363-373.
  • Sharif, S.J.S., Salehi, M. ve Bahadori, H. (2010) “Ownership Structure of Iranian Evidence and Payout Ratio. Asian Social Science, 6(7): 36-42.
  • Shleifer, A. ve Vishny, R.W. (1986) “Large Shareholders and Corporate Control” The Journal of Political Economy, 94(3): 461-488.
  • Shleifer, A. ve Vishny, R.W. (1997) “A Survey of Corporate Governanc” The Journal of Finance, 52(2): 737- 783.
  • Smit, M. ve Eije H.V. (November 30, 2009) “Ownership and Dividend Policy: New Evidence from Germany” Retrieved April 2, 2014, from http://www.fma. org/Hamburg/Papers/ OwnershipanddividendpolicynewevidencefromGermany.pdf
  • Thanatawee, Y. (2013) “Ownership Structure and Dividend Policy: Evidence from Thailand” International Journal of Economics and Finance, 5(1): 121-132.
  • Thomsen, S. (2005) “Conflicts of Interest Aligned Incentives? Blockholder Ownership, Dividends and Firm Value in the US and EU” European Business Organization Law Review, 6(2): 201-225.
  • Yıldız, B., Gökbulut, R.İ. ve Korkmaz, T. (2014) “Firmalarda Temettü Politikalarını Etkileyen Unsurlar: BIST Sanayi İşletmeleri Üzerine Bir Panel Veri Uygulaması” Ekonomik ve Sosyal Araştırmalar Dergisi, 10(1): 259-292.

Sahiplik Yoğunlaşmasının Temettü Dağıtım Kararlarına Etkisi: Borsa İstanbul’da Bir Uygulama

Year 2015, Volume: 15 Issue: 4, 509 - 522, 01.11.2015

Abstract

Bu çalışmada sahiplik yoğunlaşmasının temettü dağıtım kararları üzerine etkisi araştırılmıştır. Rassal Etkili Tobit ve Sistem Genelleştirilmiş Momentler Metodunun kullanıldığı çalışmada, Borsa İstanbul’a kote 116 sanayi şirketinin 20042009 dönemi verilerinden faydalanılmıştır. Elde edilen bulgular, sahiplik yoğunlaşmasının temettü verimini pozitif yönde etkilediğini göstermektedir. Ayrıca firmaların karlılık oranı, borçlanma düzeyi, yatırım harcamaları ve Piyasa Değeri/Defter Değeri oranının temettü dağıtım kararları üzerinde önemli bir etkiye sahip olduğu tespit edilmiştir. Sadece kar dağıtan firmalar göz önünde bulundurulduğunda, yoğunlaşma düzeyini temsil eden tüm kukla değişkenler ile karlılık, piyasa değeri ve yatırım değişkenlerinin firmaların kar dağıtım oranlarını belirlediği görülmektedir. Kar dağıtan firmalardan oluşan örneklem, düşük ve yüksek hızda büyüyen firmalar şeklinde iki gruba ayrıldığında, düşük hızda büyüyen firmaların temettü dağıtım kararlarında sahiplik yoğunlaşmasının herhangi bir etkisinin olmadığı görülmüştür. Hızlı büyüyen firmalarda ise temettü dağıtım kararlarının sahiplik yoğunlaşması, karlılık, piyasa değeri ve yatırım harcamaları tarafından belirlendiği ortaya konulmuştur

References

  • Abdullah, N.M.H., Ahmad, Z. ve Roslan, S. (2012) “The Influence of Ownership Structure on the Firms Dividend Policy Based Lintner Model” International Review of Business Research Papers, 8(6): 71-88.
  • Ahmed, H. ve Javid, A.Y. (2009) “The Determinants of Dividend Policy in Pakistan” International Research Journal of Finance and Economics, 29: 110-125.
  • Al-Shubiri, F.N., Al Taleb, G. ve Al-Zoued, A.A. (2012) “The Relationship between Ownership Structure and Dividend Policy: An Empirical Investigation” Review of International Comparative Management, 13(4): 644-657.
  • Arellano, M. ve Bond, S. (1991) “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations” The Review of Economic Studies, 58(2): 277-297.
  • Arellano, M. ve Bover, O. (1995) “Another Look at the Instrumental Variable Estimation of Error-Components Models” Journal of Econometrics, 68(1): 29-51.
  • Baltagi, B.H. (2001) “Econometric Analysis of Panel Data” John Wiley and Sons Inc. UK, Chichester. Berle, A.A. ve Means, G. C. (1932). “The Modern Corporation and Private Property” New York, Amerika Birleşik Devletleri: Macmillan.
  • Black, F. (1976) “The Dividend Puzzle” Journal of Portfolio Management, 2(2): 115-143.
  • Bøhren, Ø., Josefsen, M.G. ve Steen, P.E. (2012) “Stakeholder Conflicts and Dividend Policy” Journal of Banking and Finance, 36(10): 2852-2864.
  • Bradford, W., Chen, C. ve Zhu, S. (2013) “Cash Dividend Policy, Corporate Pyramids, and Ownership Structure: Evidence from China” International Review of Economics and Finance, 27: 445-464.
  • Chen, Z., Cheung, Y., Stouraitis, A. ve Wong, A.W. (2005) “Ownership Concentration, Firm Performance, and Dividend Policy in Hong Kong” Pacific-Basin Finance Journal, 13: 431-449.
  • Demsetz, H. (1983) “The Structure of Ownership and the Theory of the Firm” Journal of Law and Economics, 26(2): 375-390.
  • Demsetz, H. ve Lehn, K. (1985) “The Structure of Corporate Ownership: Causes and Consequences” Journal of Political Economy, 93(6): 1155-1177.
  • Easterbrook, F.H. (1984) “Two Agency Cost Explanations of Dividends” The American Economic Review, 74(4): 650-659.
  • Faccio, M., Lang, L.H. ve Young, L. (2001) “Dividend and Expropriation” The American Economic Review, 91(1): 54-78.
  • Fama, E.F. ve French, K.R. (2002) “Testing TradeOff and Pecking Order Predictions about Dividends and Debt” The Review of Financial Studies, 15(1): 1-33.
  • Farinha, J. (2003) “Dividend Policy, Corporate Governance and the Managerial Entrenchment Hypothesis: An Empirical Analysis” Journal of Business Finance & Accounting, 30(9-10): 1173-1209.
  • Gharaibeh, M., Zurigat, Z. ve Al-Harahsheh, K. (2013) “The Effect of Ownership Structure on Dividends Policy in Jordanian Companies” Interdisciplinary Journal of Contemporary Research in Business, 4(9): 769-796.
  • Gugler, K. (2003) “Corporate Governance, Dividend Payout Policy, and the Interrelation between Dividends, R&D, and Capital Investment.” Journal of Banking & Finance, 27(7): 1297-1321.
  • Gugler, K. ve Yurtoglu, B. (2003) “Corporate Governance and Dividend Pay-Out Policy in Germany” European Economic Review, 47(4): 731-758.
  • Gul, F.A. (1999) “Government Share Ownership, Investment Opportunity Set and Corporate Policy Choice in China” Pacific-Basin Finance Journal, 7(2): 157-172.
  • Gürsoy, G. and Aydoğan, K., (1999), “Equity Ownership Structure, Risk-Taking and Performance: An Empirical Investigation in Turkish Companies” International Global Finance Conference, 1998, Istanbul ve ERC/ METU International Conference in Economics, 1999, Ankara. http://www.bilkent.edu.tr/~aydogan/OwnershipStructure.pdf
  • Habibi, S., Talebnia, G. ve Dost, M.F. (2012) “The Relationship between Ownership Concentration, Financial Performance and Profit Distribution Policy” Trends in Social Science, 5(1): 64-71.
  • Harada, K. ve Nguyen, P. (2006) “Ownership Concentration, Agency Conflicts, and Dividend Policy in Japan” (SSRN No: 953433). Retrieved 2014, July 17, from http://ssrn.com/abstract=953433
  • Holderness, C.G. (2003) “A Survey of Blockholders and Corporate Control” Economic Policy Review, 9(1): 51-64.
  • Hsiao, C. (2003) “Analysis of Panel Data” Cambridge, Birleşik Krallık: Cambridge University Press.
  • Jensen, M.C. (1986) Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers” The American Economic Review, 76(2): 323-329.
  • Jensen, M.C. ve Meckling, W.H. (1976) “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure” Journal of Financial Economics, 3(4): 305-360.
  • Khan, T. (2006) “Company Dividends and Ownership Structure: Evidence from UK Panel Data” The Economic Journal, 116(510): 172-189.
  • La Porta, R., Lopez-De-Silanes, F., Shleifer, A. ve Vishny, R. (2000) “Agency Problem and Dividend Policies around the World” Journal of Finance, 55(1): 1-33.
  • Mancinelli, L. ve Özkan, A. (2006) “Ownership Structure and Dividend Policy: Evidence from Italian Firms” The European Journal of Finance, 12(3): 265-282.
  • Maury, C. B. ve Pajuste, A. (2002) “Controlling Shareholders, Agency Problems, and Dividend Policy in Finland” Stockholm School of Economics No. LTA 1/02. Retrieved 2014, October 10, from http://lta.hse. fi/2002/1/lta_2002_01_a1.pdf
  • Mehrani, S., Moradi, M. ve Eskandar, H. (2011) “Ownership Structure and Dividend Policy Evidence from Iran” African Journal of Business Management, 5(17): 7516-7525.
  • Miller, M. H. ve Modigliani, F. (1961). “Dividend Policy, Growth, and the Valuation of Shares” The Journal of Business, 34(4): 411-433.
  • Ramli, N.M. (2010) “Ownership Structure and Dividend Policy: Evidence from Malaysian Companies” International Review of Business Research Papers, 6(1): 170-180.
  • Rezaloie, A., Zariean, M. ve Bjarkenari, M.A. (2013) “Relationship between Ownership Structure and Dividend Policy in Iran” International Research Journal of Applied and Basic Sciences, 4(7): 1984-1990.
  • Rozeff, M.S. (1982) “Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios” Journal of Financial Research, 5(3): 249-259.
  • Schooley, D.K. ve Barney, L.D. (1994) “Using Dividend Policy and Managerial Ownership to Reduce Agency Costs” The Journal of Financial Research, 17(3): 363-373.
  • Sharif, S.J.S., Salehi, M. ve Bahadori, H. (2010) “Ownership Structure of Iranian Evidence and Payout Ratio. Asian Social Science, 6(7): 36-42.
  • Shleifer, A. ve Vishny, R.W. (1986) “Large Shareholders and Corporate Control” The Journal of Political Economy, 94(3): 461-488.
  • Shleifer, A. ve Vishny, R.W. (1997) “A Survey of Corporate Governanc” The Journal of Finance, 52(2): 737- 783.
  • Smit, M. ve Eije H.V. (November 30, 2009) “Ownership and Dividend Policy: New Evidence from Germany” Retrieved April 2, 2014, from http://www.fma. org/Hamburg/Papers/ OwnershipanddividendpolicynewevidencefromGermany.pdf
  • Thanatawee, Y. (2013) “Ownership Structure and Dividend Policy: Evidence from Thailand” International Journal of Economics and Finance, 5(1): 121-132.
  • Thomsen, S. (2005) “Conflicts of Interest Aligned Incentives? Blockholder Ownership, Dividends and Firm Value in the US and EU” European Business Organization Law Review, 6(2): 201-225.
  • Yıldız, B., Gökbulut, R.İ. ve Korkmaz, T. (2014) “Firmalarda Temettü Politikalarını Etkileyen Unsurlar: BIST Sanayi İşletmeleri Üzerine Bir Panel Veri Uygulaması” Ekonomik ve Sosyal Araştırmalar Dergisi, 10(1): 259-292.
There are 44 citations in total.

Details

Other ID JA54EV28CJ
Journal Section Research Article
Authors

Ersan Ersoy This is me

Emin Hüseyin Çetenak This is me

Publication Date November 1, 2015
Published in Issue Year 2015 Volume: 15 Issue: 4

Cite

APA Ersoy, E., & Çetenak, E. H. (2015). The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey. Ege Academic Review, 15(4), 509-522.
AMA Ersoy E, Çetenak EH. The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey. ear. November 2015;15(4):509-522.
Chicago Ersoy, Ersan, and Emin Hüseyin Çetenak. “The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey”. Ege Academic Review 15, no. 4 (November 2015): 509-22.
EndNote Ersoy E, Çetenak EH (November 1, 2015) The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey. Ege Academic Review 15 4 509–522.
IEEE E. Ersoy and E. H. Çetenak, “The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey”, ear, vol. 15, no. 4, pp. 509–522, 2015.
ISNAD Ersoy, Ersan - Çetenak, Emin Hüseyin. “The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey”. Ege Academic Review 15/4 (November 2015), 509-522.
JAMA Ersoy E, Çetenak EH. The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey. ear. 2015;15:509–522.
MLA Ersoy, Ersan and Emin Hüseyin Çetenak. “The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey”. Ege Academic Review, vol. 15, no. 4, 2015, pp. 509-22.
Vancouver Ersoy E, Çetenak EH. The Impact of Ownership Concentration on Dividend Payout Policy: Evidence From Turkey. ear. 2015;15(4):509-22.