Analysis of the Effect of Ownership Concentration (OC) on Dividends Using Return on Capital as a Moderator

This research paper targets to investigate the influence of ownership concentration (OC) on the dividend policy (DP) of 78 listed non-financial firms. Return on capital (ROC) is used to moderate the relationship between OC and DP. Data collected for analysis pertains to 2016–2020. The methodology adopted for analyzing data of these firms for the said period is the quantile regression panel data model (QRPDM). The models' findings show no significant impact of OC on the DP of these firms; however, under the influence of ROA, the relationship between OC and DP becomes significant. The limitation intrinsic to this study is the non-consideration of financial firms, which paves the way for further work in the area. This study is the first to take up OC, a crucial component of CG, and assess its impact on DP for India specifically.