Common Ownership and Firm Dividend Policies

Alberta Di Giuli, Egle Karmaziene, Naciye Sekerci

Research output: Working paperAcademic

Abstract

This paper examines the relationship between common ownership and dividend policy of firms. Using a detailed dataset from Sweden on investors’ holdings we find that dividend policies of firms that are newly added to a portfolio evolve towards the dividend policies of firms that are already in the portfolio of the new owner. This relation is not driven by investors targeting firms that are forecasted to change their dividend policies or firms that have a similar dividend strategy to the companies already in the portfolio of the new acquirer. The effect on dividends depends on the characteristics of the new owner and of the company purchased. Overall, our results suggest that owners have a “dividend policy taste”, are influential in dividend decisions, and their influence depends on the type of co-owner, on the governance and existing ownership of the firm.
Original languageEnglish
PublisherSSRN
Publication statusPublished - 2019

Fingerprint

Ownership
Dividend policy
Owners
Dividends
Investors
Governance
Sweden
Targeting

Keywords

  • common ownership
  • family ownership
  • institutional investors
  • dividends

Cite this

Di Giuli, A., Karmaziene, E., & Sekerci, N. (2019). Common Ownership and Firm Dividend Policies. SSRN.
Di Giuli, Alberta ; Karmaziene, Egle ; Sekerci, Naciye. / Common Ownership and Firm Dividend Policies. SSRN, 2019.
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Common Ownership and Firm Dividend Policies. / Di Giuli, Alberta; Karmaziene, Egle; Sekerci, Naciye.

SSRN, 2019.

Research output: Working paperAcademic

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