The effects of ownership structure on dividend policy: Evidence from seasoned equity offerings (SEOs)

Ngô, Anh Dung; Duong, Hong Kim; Nguyen, Thanh; Nguyen, Liem Thanh

doi:10.1016/j.gfj.2018.06.002

Cited by 28 publications

(14 citation statements)

References 31 publications

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“…La Porta et al (2000) and Brockman and Unlu (2009) provide empirical evidence that investor protection matters in shaping firms' dividend policies around the world. In the same spirit, Bøhren et al 2012, Ngo et al (2018), and Balachandran et al (2019) find that controlling shareholders tend to use dividend policy to mitigate conflicts with minority shareholders. In studying female directors, Kang et al (2010) provide evidence that women place more interest in protecting shareholders, a finding that is recently supported by Srinidhi et al (2020), who show that the presence of female board members is beneficial to firm governance.…”

Section: Hypothesis Developmentmentioning

confidence: 93%

Women in a Dual Board System and Dividend Policy

Risfandy¹,

Radika²,

Wardhana³

2021

BEMP

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We investigate whether firms with the presence of female on its board of commissioners and board of directors are associated with higher dividend policy. This paper uses Indonesian setting as a country with a dual board system implying that the role of board of commissioners and board of directors is explicitly separated. Using panel data on 525 publicly listed firms in Indonesia between 2011 and 2018, we find that the women's presence has different impacts on the dividend policy depending on their role as an executive or non-executive on the board. Female directors are negatively associated with cash dividend payments, while female commissioners positively impact dividend payment in the case of family-controlled firms only. Our results contribute to the literature on board gender diversity by showing different roles and behavior of boards in each tier in the corporate dividend policy, thus providing insights on corporate governance in a two-tiered board system in developing countries.

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Section: Hypothesis Developmentmentioning

confidence: 93%

Women in a Dual Board System and Dividend Policy

Risfandy¹,

Radika²,

Wardhana³

2021

BEMP

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“…Corporate policy of a firm stems from three main decisions taken by its board of directors, namely dividend, investment and financing decisions. Dividend decision has become very germane in the recent financial literature (Jeon & Ryoo, 2013;Jabbouri, 2016;Baker, Kilincarslan, & Arsal, 2018;Ngo, Duong, Nguyen, & Nguyen, 2018). Dividends are payments made to shareholders to compensate them for their equity stake and inherent risks of the firm.…”

Section: Introductionmentioning

confidence: 99%

Foreign directors, indigenous directors and dividend payout structure in Nigerian deposit money banks

Eluyela

Adetula

Obasaju

et al. 2019

Banks and Bank Systems

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This paper aims to examine the influence foreign and indigenous directors have on determining firms’ dividend payout structure. The population for this study is the fifteen deposit money banks listed on the Nigerian Stock Exchange. Using a random sampling technique, a sample of 14 deposit money banks for the 2010 to 2017 period was taken. The total observations used for the work was 112. The study adopted a panel data methodology, which was estimated with a random-effect model. It was observed that a significant relationship exists between foreign directors and the dependent variable (dividend payout structure). The dividend payout structure by dividend per share of sampled firms was measured. This study will improve analysts and investors’ understanding of dividend policy by giving them insights in identifying the main determinants of dividend policy. For policy makers, this study reinforces the fact that good corporate governance is important to develop financial markets and improve the firm value.

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“…As defined by Johnson and La Porta (2000), tunnelling is the controlling shareholders' malpractice of using dividend payment, related party transactions or other unscrupulous ways to exploit minority shareholders' interest. Based on evidence offered by a vast literature on the subject, large shareholders have the ability to encroach disproportionate interests and redirect resources from companies, severely undermining the firm value in the process (Barclay & Holderness, 1989;Chiou et al, 2010;Gordon & Pound, 1993;Gugler, 2003;Holmen & Knopf, 2004;Ng, 2014;Ngo et al, 2018;Truong & Heaney, 2007). Using CAR to test market reaction in China, Chen et al (2008) discover controlling shareholders' practice of using dividend for tunnelling rather than using it as a tool for signalling or mitigating principal-agent problems.…”

Section: Stock Market Reaction To Different Dividend Payout Incentivesmentioning

confidence: 99%

Dividend payout policies in the pre and post split share structure reform in China

Zhao

2021

Cogent Economics & Finance

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This paper examines the motivation of dividend payout policies for Chinese listed firms before and after the Split Share Structure Reform in China from the corporate governance-related viewpoint. Analysis was carried out using panel data with random effect from a sample of firms listed on the A-share Chinese market in the period of 2001-2004 (before the reform) and 2014-2017 (after the reform). It is found that (1) the incentive of tunnelling via dividend by controlling shareholders is weaken after the reform; (2) dividends are taken as a measure to reduce agency problems caused by free cash flows after the reform; (3) dividends after the reform become more stable than those before the reform. (4) in general, the market reacts positively to the increase of dividend both before and after the reform. It can be concluded that dividend policies are taken as the measure of minority shareholder protection and signalling rather than expropriation after the reform. This paper contributes to the literature by comparing dividend payout policies during the full circulation era with that before the reform was initiated.

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The effects of ownership structure on dividend policy: Evidence from seasoned equity offerings (SEOs)

Cited by 28 publications

References 31 publications

Women in a Dual Board System and Dividend Policy

Women in a Dual Board System and Dividend Policy

Foreign directors, indigenous directors and dividend payout structure in Nigerian deposit money banks

Dividend payout policies in the pre and post split share structure reform in China

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