Impact of institutional ownership and individual Ownership on dividend policy of listed plantation companies in Sri Lanka

Abstract

Ownership structure is one of the main dimensions of corporate governance. The aim of this study is to examine the impact of institutional ownership and individual ownership on dividend policy of listed plantation companies in Sri Lanka. Fifteen listed plantation companies were selected as a sample by using random sample method and secondary data was collected from the annual report of listed plantation companies in Sri Lanka during the period of 2010-2014. This study considers institutional ownership and individual ownership as independent variables and dividend policy as dependent variable which is measured by dividend payout ratio. For the purpose of analysis, multiple regressions and Pearson’s correlation analysis were performed. The results reveal that institutional ownership and individual ownership have no impact on dividend policy.