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This research focuses on one of the main corporate decisions that can have a big impact on the feelings of the investor, namely a policy of corporate dividends. This paper examines the relationship between ownership structure and dividend policy in Malaysia over the period 2007-2016 in a sample of 100 top-listed firms from Bursa Malaysia. Generalized Method of Moments (GMM) has been used to analyse the dividend payouts for ownership variables relationship. The empirical results showed there is a positive significant related to concentrated and foreign ownership structure in Malaysia. These suggested that firms claim that foreign investors show more active monitoring on the organization to mitigate the issues with agency and allows the companies to increase the rate of dividend payouts while concentrated ownership may improve a firm’s dividend payout by considering large concentrated shareholders to monitor the firm and reduce thus agency problems which align with agency theory.
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To cite this article: Shafai, N. A. Shafai, N. A. (2020). Ownership Structure and Dividend Policy: Malaysian Perspective, International Journal of Academic Research in Accounting, Finance and Management Sciences 10 (3): 97-106.
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