The Influence of Institutional Investor Heterogeneity on Dividend Payouts: Evidence from Japan
(2025) BUSN79 20251Department of Business Administration
- Abstract
- Title: The Influence of Institutional Investor Heterogeneity on Dividend Payouts: Evidence from Japan
Purpose: To examine how institutional investor heterogeneity influences dividend payout policies in Japanese firms, and whether the implementation of Japan’s Corporate Governance Code (CG Code) in 2015 has modified this relationship.
Methodology: The study employs fixed effects panel regressions with lagged explanatory variables to examine the impact of different types of institutional investor on dividend payout policies, both before and after the introduction of CG Code in 2015, including a subsample analysis of eligible firms to test the robustness and policy relevance of the findings.
Theoretical perspectives: The study... (More) - Title: The Influence of Institutional Investor Heterogeneity on Dividend Payouts: Evidence from Japan
Purpose: To examine how institutional investor heterogeneity influences dividend payout policies in Japanese firms, and whether the implementation of Japan’s Corporate Governance Code (CG Code) in 2015 has modified this relationship.
Methodology: The study employs fixed effects panel regressions with lagged explanatory variables to examine the impact of different types of institutional investor on dividend payout policies, both before and after the introduction of CG Code in 2015, including a subsample analysis of eligible firms to test the robustness and policy relevance of the findings.
Theoretical perspectives: The study draws on previous empirical literature and theoretical perspectives e.g. agency theory and monitoring role, signaling theory, and tax clientele effect theory.
Empirical foundation: The dataset uses publicly listed firms on the Tokyo Stock Exchange (TSE) from 2011 to 2020, with a final sample of 2,831 firms and 24,392 firm-year observations. In the subsample analysis, the sample dropped to 22,512 observations.
Conclusions: This study finds that among different institutional investor types, only asset management firms exhibit a significantly positive impact on dividend payout ratios, and this influence has emerged and became even more pronounced after the implementation of CG Code in 2015, aligning with agency theory and the Code’s emphasis on transparency and capital efficiency. In contrast, no significant effect is found for short-term or long-term institutional investors. Robustness checks using alternative payout measures and subsample analysis confirm the consistency of these findings. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9192121
- author
- Kasemnithichok, Kamonporn LU and Torres Leon, Carmen Andrea LU
- supervisor
- organization
- course
- BUSN79 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Dividend payout policy, Institutional ownership, Institutional Investor Heterogeneity, Japan, Corporate Governance Code
- language
- English
- id
- 9192121
- date added to LUP
- 2025-06-13 09:26:31
- date last changed
- 2025-06-13 09:26:31
@misc{9192121,
abstract = {{Title: The Influence of Institutional Investor Heterogeneity on Dividend Payouts: Evidence from Japan
Purpose: To examine how institutional investor heterogeneity influences dividend payout policies in Japanese firms, and whether the implementation of Japan’s Corporate Governance Code (CG Code) in 2015 has modified this relationship.
Methodology: The study employs fixed effects panel regressions with lagged explanatory variables to examine the impact of different types of institutional investor on dividend payout policies, both before and after the introduction of CG Code in 2015, including a subsample analysis of eligible firms to test the robustness and policy relevance of the findings.
Theoretical perspectives: The study draws on previous empirical literature and theoretical perspectives e.g. agency theory and monitoring role, signaling theory, and tax clientele effect theory.
Empirical foundation: The dataset uses publicly listed firms on the Tokyo Stock Exchange (TSE) from 2011 to 2020, with a final sample of 2,831 firms and 24,392 firm-year observations. In the subsample analysis, the sample dropped to 22,512 observations.
Conclusions: This study finds that among different institutional investor types, only asset management firms exhibit a significantly positive impact on dividend payout ratios, and this influence has emerged and became even more pronounced after the implementation of CG Code in 2015, aligning with agency theory and the Code’s emphasis on transparency and capital efficiency. In contrast, no significant effect is found for short-term or long-term institutional investors. Robustness checks using alternative payout measures and subsample analysis confirm the consistency of these findings.}},
author = {{Kasemnithichok, Kamonporn and Torres Leon, Carmen Andrea}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Influence of Institutional Investor Heterogeneity on Dividend Payouts: Evidence from Japan}},
year = {{2025}},
}