Corporate governance and dividend policy in emerging markets

Determinants of firm value in Latin America: an analysis of firm attributes and institutional factors

“…In these contexts, the payout policy has an informative 194 content in the capital markets regarding the future prospects of the firm, and 195 consequently higher payout ratios are evidenced (Brav et al 2005). Similarly, 196 Mitton (2004) suggests that the preference for dividends may be stronger in 197 emerging markets with weak investor protection if shareholders perceive a greater 198 risk of expropriation by insiders.…”

Geographic location, excess control rights, and cash holdings

“…1 For further empirical evidence on the outcome and substitute models, see, for example, Alzahrani and Lasfer (2012), Brockman andUnlu (2009), Faccio et al (2001), La Porta et al, (2000), Mitton (2004), and Shao et al (2013). John et al (2011) suggests that since distance engenders considerable free cash flow, remote firms may pre-commit to higher dividends to decrease agency costs of such free cash flow, in line with Stulz (1990).…”

Empirical Evidences Regarding Correlation between Dividend Policy and the Performance of Companies Listed on the Bucharest Stock Exchange

“…Companies from emerging economies must retain funds to invest in future projects that have a positive net present value (Abor and Bokpin, 2010). Mitton (2004) believes that there is a strong negative relationship between dividends and investment opportunities in a country where shareholders' rights are well protected. Because well protected investors allow the company to buy shares, to keep the money in the hope of obtaining better returns in the future of profitable investment projects.…”