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Author: Jana P. Fidrmuc Publisher: ISBN: Category : Languages : en Pages : 46
Book Description
This paper presents a culturally rooted agency explanation for differences in dividend payout policies around the world. We conjecture that the social normative nature of culture influences the character of agency relations and determines the acceptance and legitimacy of different dividend payout strategies across different countries. By linking dividends to cultural differences across 5,797 firms in 41 countries, our analysis shows that high individualism, low power distance, and low uncertainty avoidance are significantly associated with higher dividend payouts. A comprehensive set of robustness tests in which we control for legal institutions, share repurchases, corporate debt ratios, and ownership structures confirms that culture is a relevant factor when analyzing dividend distributions. Our results further show that legal institutions and culture as a social institution have complementary effects on dividend payouts. Overall, our finding that culture matters suggests important implications for a wide range of agency-based economic and capital market phenomena.
Author: Jana P. Fidrmuc Publisher: ISBN: Category : Languages : en Pages : 46
Book Description
This paper presents a culturally rooted agency explanation for differences in dividend payout policies around the world. We conjecture that the social normative nature of culture influences the character of agency relations and determines the acceptance and legitimacy of different dividend payout strategies across different countries. By linking dividends to cultural differences across 5,797 firms in 41 countries, our analysis shows that high individualism, low power distance, and low uncertainty avoidance are significantly associated with higher dividend payouts. A comprehensive set of robustness tests in which we control for legal institutions, share repurchases, corporate debt ratios, and ownership structures confirms that culture is a relevant factor when analyzing dividend distributions. Our results further show that legal institutions and culture as a social institution have complementary effects on dividend payouts. Overall, our finding that culture matters suggests important implications for a wide range of agency-based economic and capital market phenomena.
Author: Nalinaksha Bhattacharyya Publisher: ISBN: Category : Languages : en Pages : 16
Book Description
While researchers have found that dividend payout ratios are negatively related to executive compensation in North America, a relevant question remains as to whether such relationships hold in other institutional environments. Evidence from this study suggests that, as in North America, there is a negative relationship between dividend payout ratios and executive compensations in Germany. This study shows, that the role of dividends in resolving agency issues, is relevant not only in market based systems like that in North America but also in bank based systems like Germany. Agency issues also appear to be partially mitigated by the influence of banks. Bank influence is also found to be positively related to dividend payout ratio and thus consistent with the Free Cash Flow Hypothesis of Jensen (1986) and Easterbrook (1984).
Author: Puneet Prakash Publisher: ISBN: Category : Languages : en Pages : 53
Book Description
We examine the interaction of dividends, agency costs and taxes on SEO valuations using the 2003 dividend tax cut as a natural experiment. We find the difference in SEO announcement-day returns between dividend- and non-dividend-paying firms disappears after the tax cut evidencing dividend status dependent revaluations. Incorporation of agency costs reveals the marginal impact of excess cash flows on stock prices increases for high-growth, non-dividend-paying firms after the tax cut. Simultaneously, book leverage for non-dividend-paying firms decreases suggesting the shareholders expect to corner a greater proportion of returns in future. Overall, our findings support that dividend payouts lower agency costs.
Author: Thorsten Hens Publisher: World Scientific ISBN: 9811221960 Category : Business & Economics Languages : en Pages : 573
Book Description
This book provides a comprehensive overview of the emerging field of cultural finance. It summarizes research results of cultural differences in financial decision making and financial markets. Many of the results have been published in leading academic journals over the last ten years but some are presented here for the first time. The book is based on an international survey on risk and time preferences — the INTRA study, conducted in 53 countries worldwide. Applications to financial markets include the equity premium puzzle, the value premium, dividend payout policies and asset allocations.
Author: Stefan Cristian Gherghina Publisher: MDPI ISBN: 3036505709 Category : Business & Economics Languages : en Pages : 408
Book Description
This book comprises 19 papers published in the Special Issue entitled “Corporate Finance”, focused on capital structure (Kedzior et al., 2020; Ntoung et al., 2020; Vintilă et al., 2019), dividend policy (Dragotă and Delcea, 2019; Pinto and Rastogi, 2019) and open-market share repurchase announcements (Ding et al., 2020), risk management (Chen et al., 2020; Nguyen Thanh, 2019; Štefko et al., 2020), financial reporting (Fossung et al., 2020), corporate brand and innovation (Barros et al., 2020; Błach et al., 2020), and corporate governance (Aluchna and Kuszewski, 2020; Dragotă et al.,2020; Gruszczyński, 2020; Kjærland et al., 2020; Koji et al., 2020; Lukason and Camacho-Miñano, 2020; Rashid Khan et al., 2020). It covers a broad range of companies worldwide (Cameroon, China, Estonia, India, Japan, Norway, Poland, Romania, Slovakia, Spain, United States, Vietnam), as well as various industries (heat supply, high-tech, manufacturing).
Author: Douglas Cumming Publisher: Springer ISBN: 1137454636 Category : Business & Economics Languages : en Pages : 217
Book Description
The focus of the global economy has increasingly shifted toward China and emerging countries. However, despite their high growth prospects, emerging economies often lack the sound capital market and corporate governance systems necessary to promote the efficient allocation of financial resources to maintain the confidence of capital providers. As China becomes more prominent economically, the development of its capital market becomes an increasingly important issue. This book presents some of the latest academic research on China's capital markets, demonstrating some of the major issues currently being faced. Preeminent researchers in the field examine key topics such as the performance of commercial banks, dividends and ownership, financial constraints and firm performance, the role of political networks, stock price decomposition, stock return predictability, and the role of media coverage. In this book, the authors use the country's institutional background to offer useful insight into policy implications for the development of China as well as other emerging economies.
Author: David Procházka Publisher: Springer ISBN: 3030118517 Category : Business & Economics Languages : en Pages : 397
Book Description
This proceedings volume examines accounting and financial issues and trends from both global and local economic perspectives. Featuring selected contributions presented at the 19th Annual Conference on Finance and Accounting (ACFA) held in Prague, Czech Republic, this book offers a mixture of research methods and micro- and macroeconomic approaches to depict a detailed picture of the impact of global and local determinants on the globalized economy. The global perspectives versus local specifics make the volume useful for not only academics and scholars, but also for regulators and policy makers when deliberating the potential outcome of competing regulatory mechanisms. The Annual Conference on Finance and Accounting (ACFA) has become one of the biggest conferences in the Central and Eastern European (CEE) region solely oriented to contemporary research in finance and accounting. Bringing together researchers and scholars from all over the world, the conference provides a platform in which thoughts, visions, and contemporary developments in the field of finance and accounting are discussed.
Author: Harry DeAngelo Publisher: Now Publishers Inc ISBN: 1601982046 Category : Corporations Languages : en Pages : 215
Book Description
Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Author: Jana P. Fidrmuc
Author: Jana P. Fidrmuc
Author: Nalinaksha Bhattacharyya
Author: Puneet Prakash
Author: Asl? Demirgüç-Kunt
Author: Thorsten Hens
Author: Stefan Cristian Gherghina
Author: Douglas Cumming
Author: David Procházka
Author: Harry DeAngelo
Author: Aslı Demirgüç-Kunt