The role of taxes and the interdependence among corporate financial policies: Evidence from a natural experiment

Colombo, Jéfferson Augusto; Caldeira, João Frois

doi:10.1016/j.jcorpfin.2017.09.007

Cited by 19 publications

(7 citation statements)

References 39 publications

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“…More specifically, previous research on firm dividend policy has focused on what characteristics of a firm influences the return of benefits to investors in the form of dividends or repurchases. The studies that focus on firm characteristics include the free cash flow theories (Jagannathan et al, 2000;Jensen, 1986;Lie, 2000), signaling of future profitability (Benartzi et al, 1997), future growth/investment opportunities of the firm (Gugler, 2003) and the clientele hypothesis in terms of taxes (Dahlquist et al, 2014;Colombo and Caldeira, 2018). Some other researchers have focused on how managerial characteristics influence dividend policy.…”

Section: Introductionmentioning

confidence: 99%

The impact of board composition on the dividend policy of US firms

Thompson¹,

Manu²

2021

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Purpose This paper aims to examine whether the characteristics of boards are more important in determining dividend policy than management characteristics. The authors show that as the final declarers of dividend policy is a firm’s board, the composition of a firm’s board significantly subsumes the effect of management characteristics that may also influence dividend policy. Design/methodology/approach Using the dividend declaration dummy variable, the authors run a fixed effect logistic regression of the dividend indicator on board characteristics, and managerial characteristics with firm level controls, year effects and industry effects while clustering standard errors at the firm level. For dividend yield variable which is censored at zero, they use a fixed effect Tobit regression. Findings The results of the study show that board characteristics such as average age, female presence and size have a strong positive significant effect, whereas board independent chair and voting right of directors have a negative significant effect on the likelihood of dividend declaration. For dividend yields, the results suggest that the presence of directors with financial expertise and the board size are the main influencers of dividend policy. Managerial characteristics are subsumed by director characteristics for determining dividend policy. The results overall support the evidence on the monitoring role of boards on management. Originality/value The originality and value of this study lies in the approach of including a comprehensive number of board characteristics unlike previous studies which makes the study of the influence of board composition on dividends more encompassing.

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Section: Introductionmentioning

confidence: 99%

The impact of board composition on the dividend policy of US firms

Thompson¹,

Manu²

2021

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“…Jéfferson Augusto Colombo / Paulo Renato Soares Terra heterogeneity in tax preferences among shareholders (Portal & Laureano, 2017). We also provide new evidence that overall taxation (firm-level plus shareholder-level) is an essential factor driving payout policy, and thus we contribute to a growing body of literature concerning taxes and corporate decisions (see, e.g., Colombo & Caldeira, 2018;Graham, Hanlon, Shevlin, & Shroff, 2017).…”

Section: And Clientele Effects Induced Bymentioning

confidence: 61%

Interest on Equity Versus Dividends: The role of Shareholder Identity on Corporate Tax Avoidance

Colombo

Terra

2022

RBGN

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“…Obtained with the results, it is evident that the financial planning is a broad subject that requires a general vision of integration, and confirm the exposed in [11], where a model for the financial planning is exposed incorporating the time and the expected nature of financial events. Also, in [12] the relationship between the general financial policies of companies and their pension plans was investigated; and in [13], they conclude that companies must adjust their policies taking into account the interdependence between alternative financial instruments for decision making. Now, the Financial Management dimension presents the results shown in Table 4.…”

Section: Resultsmentioning

confidence: 99%

Financial management and competitiveness of tourism businesses

Ávila¹,

Martelo²,

Franco³

2018

IJET

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The objective of this research was to determine the relationship between financial management and competitiveness of tourism sector companies in the Colombian-Venezuelan border. The research was applied, cross-sectional, descriptive and correlational with no experimental and field design, supported by the survey instrument, which was applied to the administrators and financial managers of tourism companies. As a result, it was obtained that the majority qualified with a high level of presence of the indicators. Likewise, it was concluded that there is a consistent correlation between the variables financial strategies and competitiveness, by identifying financial planning and competitiveness for the success of tourism businesses in the Colombian-Venezuelan border. Keyword-Financial management, Competitiveness, Planning I. INTRODUCTION According to the World Tourism Organization, during the last six decades, tourism has experienced a continuous expansion and diversification, becoming one of the largest economic sectors and growth in the world [1]. The arrival of international tourists grew by 5% worldwide in 2013, reaching a record 1,087 million arrivals. With respect to Colombia, there was a growth of 5% in 2013, from which a good result was obtained with respect to previous years. Likewise, Venezuela received 25.2% more international tourists in 2012, all of them from Colombia, Brazil, the United States, Spain and Italy, reporting a 45.1% increase in revenue from incoming tourism, compared to 2011. According to the long-term forecasts prepared by the UNWTO, included in Tourism by 2030, the arrival of international tourists worldwide will grow 3.3% annually between 2010 and 2030 to reach 1800 million in 2030. To accommodate these figures, Colombia and Venezuela have regions with high growth and positioning of the hotel industry. With regard to Colombia, cities such as Bogotá, Medellín, Cartagena and Santa Marta have a good hotel capacity; in the case of Venezuela, there are Caracas and Isla Margarita, however, this situation does not characterize the border region of Venezuela, especially in the northern border municipalities (Department of La Guajira and Zulia State), which have low capacity, quality, technology management and innovation in this sector. Under this perspective of global and regional tourism development, this tourism sector requires solid, flexible and innovative organizations, derived from an efficient application of scientific processes of administration and management, in order to achieve efficiency in decision-making in order to make them competitive in a global market that every day is more demanding in terms of expectations and needs of customers [2]. Consequently, the greatest responsibility of managers is to find alternatives to achieve profitability and achieve a competitive leadership position [3]. In this sense, financial management turns out to be a fundamental axis in the general process of strengthening and development of companies, as well as an indispensable support for financial d...

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The role of taxes and the interdependence among corporate financial policies: Evidence from a natural experiment

Cited by 19 publications

References 39 publications

The impact of board composition on the dividend policy of US firms

The impact of board composition on the dividend policy of US firms

Interest on Equity Versus Dividends: The role of Shareholder Identity on Corporate Tax Avoidance

Financial management and competitiveness of tourism businesses

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