Dynamic Panel of Ownership Structure and Dividend Policy: Evidence from Different Market Segmentation

The aim of this paper is to identify the ownership structure and dividend policies for three countries with different market developments. The sample in this study incorporates the top 100 listed firms on each country's stock exchange over a ten-year period from 2007 to 2016. The dynamic panel data set was constructed using the sample firms which enables the employment of the Generalized Method of Moment (GMM). The study discovered that the only important variables in explaining the dividend policy in these three nations are the lagged dividend payout ratio and foreign ownership structure components after utilising the GMM estimate. This could be an indication of a lagging dividend payout because the past dividend has an impact on the current dividend and there are shares held by foreign investors in the sample companies in all three countries. Foreign investors monitor a company more actively to reduce agency issues and encourage corporations to increase dividend payout levels. When deciding on a dividend policy, management, shareholders, investors, policymakers, analysts, banks, and governments can benefit from the study's important input and practical advice.