IMPACT OF OWNERSHIP STRUCTURE ON DIVIDEND POLICY: MODERATING ROLE OF FIRM SIZE IN PAKISTAN

Abstract

This study purposes to investigate the effect of ownership structure on dividend policy moderating role of firm’s size in Pakistan. The data for this study is taken from PSX, 103 listed non-financial corporations from 2016 to 2020.The study used three estimation techniques (REM, FEM and GMM) to measure the impact of ownership structure on business policies moderating role of firm size. This study examined that director’s ownership and institutional ownership has a positive impact on dividend payout ratio, foreign ownership has inverse relation to dividend payout ratio whereas dividend policy did not influenced by ownership concentration. Firm size has positive relation to dividend policy and significantly moderates with director ownership, institutional and foreign ownership on dividend policy.