Institutional investors and dividend payments: evidence in the oil industry.

This article investigates the influence of institutional investors—financial intermediaries such as pension funds, hedge funds, and insurance companies—on dividend payment policies in the oil and gas (O&G) industry. Using panel data from the 50 largest O&G companies between 2010 and 2020 and employing the System Generalized Method of Moments (GMM-Sys) regression model, the study finds that dividend distribution is significantly related to companies’ profitability, financial leverage, and dividend payment history, but not to the presence or concentration of institutional investors in ownership. Despite institutional investors holding an average of about 25% of shares in these companies, their heterogeneous characteristics and varying investment horizons appear to limit their collective influence on dividend policies. The research highlights the sector’s mature phase and ongoing transition toward a low-carbon economy, suggesting that institutional investor impact on corporate financial decisions may be nuanced and warrants further study, particularly regarding investor heterogeneity and investment duration.