Examining the Nexus of Insider Ownership and Institutional Ownership with Dividend Policy in Conventional Mutual Funds Evidence from Pakistan

Abstract

The research examines how mutual fund ownership patterns influence dividend strategies in Pakistan’s conventional mutual funds by studying both insider and institutional ownership data. The study examines ten years of panel data using fixed effects models together with Driscoll-Kraay standard errors to obtain solid findings despite data irregularities. The research results indicate that owners with substantial stakes want to receive more dividends as higher insider ownership results in increased dividend payments. Institutional investors lower dividend payments because they like to put earnings back into the fund. Results supported that fund size and age positively influenced dividend payout but negatively influenced by Fund manager’s qualification and experience.
Our study evaluates conventional mutual funds in Pakistan yet faces boundaries due to insufficient data availability and exclusive attention to one market sector. Our study provides important theoretical knowledge on emerging market dividend behavior while supplying practical guidance to financial professionals and government officials despite certain research boundaries. The results show that how companies are owned determines their dividend choices which lets them match their management style to what investors want and strengthen financial strategies for mutual funds.