Corporate Ownership Structure and Dividend Payouts: The Case of GCC Countries

Abstract

The aim of this study is to examine the association between the firm's ownership structure characteristics and the dividend payouts of the publicly listed non-financial companies in Gulf Cooperation Council (GCC) countries. The study applied a multivariate regression model and found a significant positive association between institutional ownership and the firm's dividend payouts. However, the study found no significant relationship between affiliate ownership and block ownership with the firm's dividend payout. The study findings can provide a valuable insight to the shareholders in GCC countries and aid in understating the impact of different ownership structures on the firm's dividend payout policies through the prospective of the agency theory. Also, the study can support the shareholders in reducing the agency problem by establishing a more effective ownership structure.