Impact of ownership structure on dividend policy

Short and long term analysis using VECM approach

Authors

  • Amani CHERTEL Faculté des Sciences Economiques et de Gestion de Sousse. Université de Sousse. Laboratoire d'économie et de Gestion Industrielle (LEGI). Ecole Polytechnique de Tunisie. Université de Carthage.
  • Anis EL AMMARI Faculté des Sciences Economiques et de Gestion de Sousse. Université de Sousse. Laboratoire d'économie et de Gestion Industrielle (LEGI). Ecole Polytechnique de Tunisie. Université de Carthage.
  • Chokri TERZI Faculté des Sciences Economiques et de Gestion de Sousse, Université de Sousse Tunisie. LEGI, Ecole polytechnique de Tunis, Université de Carthage, Tunisie. https://orcid.org/0000-0002-9478-2941 (unauthenticated)

DOI:

https://doi.org/10.59051/joaf.v11i2.424

Keywords:

Ownership structure-Dividend Policy-Unit Root-Cointegration-VECM

Abstract

This article examines the ownership structure effects on dividend policy for seven companies listed on the Tunis Stock Exchange during the period 1996 to 2017. The model used in this study includes size and tangibility as control variables. In order to test the long run association ship between variables, unit root and cointegration tests are implemented. According to tests result, the study sets out to estimate a VEC model for panel data using DOLS and FMOLS cointegrating regression. One outstanding result of long term estimations is that, the ownership concentration has a negative and significant effect contrary of all other variables which affect positively and significantly the dividend policy. In the short term, tangibility has a positive and significant effect. The value of error correction terms allows appreciating a speed of adjustment towards long-run equilibrium that exceeds 65%.

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Published

2020-12-31

Issue

Vol. 11 No. 2 (2020): Fall 2020

Section

Articles

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How to Cite

Impact of ownership structure on dividend policy: Short and long term analysis using VECM approach. (2020). Journal of Academic Finance, 11(2), 260-279. https://doi.org/10.59051/joaf.v11i2.424

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