| المستخلص: |
This study ventures into an all-important segment of corporate finance and management, which continues to draw mixed reactions and interests alike- Dividend policy. Dividend is one of the items that hold importance in the future performance of a company. The investors normally look at the company from its returns point of view, a phenomenon that determines whether the investors retain their respective investments in the company. In Saudi Arabia, the decision to payout dividends largely remains a function of the ownership structure of the country’s companies, which are mainly owned by families. The scenario has a great influence on most executive decisions regarding the companies’ operations and management affairs. In this regard, the ownership structure would determine the amount of dividends to be paid. The study is designed purposefully to investigate the effect of ownership structure on the dividend payouts of firms in the context of Saudi Arabia. In so doing, the study hope to assess the companies’ ownership in Saudi Arabia with a view to analysing their effects on dividend-paying trends; assess how the dividend payout is perceived by the investors in making their decision for the investment in the companies; assess the overall effects of the dividend payout by the companies; as well as analysing the relationship between dividend payout, investors’ capital, and the overall companies performance in the area of study. While adopting a field study-based approach, the study aims at answering three specific questions: - regarding the prevailing ownership structure of selected large companies, the relationship between ownership structure and Dividend Payout among selected companies, and the effect of the prevailing dividend payout trends on the investor behavior and economy in the context of Saudi Arabia.
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