Abstract:
In today's dynamic business environment, ownership structure and dividend policy
are increasingly recognized as critical financial concepts. This study aims to examine
the impact of ownership structure on dividend policy in licensed commercial banks
in Sri Lanka. The research considers Managerial Ownership, Institutional Ownership
and Foreign Ownership as independent variables, while Dividend Policy serves as the
dependent variable, with Firm Size included as a control variable. The study utilizes
annual data from 2019 to 2023, covering a sample of 20 licensed commercial banks.
Data analysis was conducted through applying descriptive statistics, correlation
analysis, and multiple regression analysis to assess the relationships among variables
and the influence of ownership structure on dividend policy. The correlation analysis
indicates a significant negative relationship between Institutional Ownership and
Dividend Policy, while Foreign Ownership exhibits a significant positive relationship
with Dividend Policy. Multiple regression results further confirm that Institutional
Ownership negatively impacts Dividend Policy. However, the study finds no significant impact of Managerial Ownership, Foreign Ownership, or Firm Size on
Dividend Policy. The findings of this study provide valuable insights for investors
and companies, enabling them to make informed investment decisions.
Understanding the relationship between ownership structure and dividend policy
enhances investor performance and contributes to corporate governance practices.
