We study the link between institutional ownership stability and dividend payout ratio. We find that stable and large institutional owners favour dividend paying companies. There also exists a positive association between ownership persistence and dividend payout. Conversely, firms that change...

Purpose The purpose of this paper is to empirically examine the link between institutional ownership stability and dividend payout ratio. Design/methodology/approach First, the authors estimate the propensity of a firm to pay dividend. Next, the authors perform panel fixed-effect regressions of...