Proceedings of 7th Global Business and Social Science Research Conference
13 - 14 June, 2013, Radisson Blu Hotel, Beijing, China, ISBN: 978-1-922069-26-9
Does Foreign Ownership Influence a Firm’s Dividend
Payout Policy? Evidence from Taiwanese Listed
Firms
Yi-Chein Chiang and Bo-Song Lai
By using Taiwanese listed firms from 2000-2010, this
study investigates the influence of foreign ownership to
a firm’s dividend payout policy. Our results show that
foreigners prefer a firm paying cash dividend, and
there is positive relationship between foreign
ownership and dividend payout. As for the domestic
investors, on the contrary, they prefer a firm paying
less cash dividend. When the Granger causality test is
used, the results demonstrate that there is two-way
feedback between foreign ownership and dividend
payout, as well as domestic ownership and dividend
payout.
Keyword: Foreign Ownership, Dividend Payout Policy, Granger Causality Test
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Professor Yi-Chein Chiang (Corresponding Author), Department of International Trade
Feng Chia University, Taiwan, Email: ycchiang@fcu.edu.tw
Bo-Song Lai, Master Student, Department of International Trade, Feng Chia University,Taiwan.