Impact of ownership structure on dividend policy
Short and long term analysis using VECM approach
DOI:
https://doi.org/10.59051/joaf.v11i2.424Keywords:
Ownership structure-Dividend Policy-Unit Root-Cointegration-VECMAbstract
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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