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| Content Provider | Springer Nature Link |
|---|---|
| Author | Huang, Yuting Chen, Anlin Kao, Lanfeng |
| Copyright Year | 2012 |
| Abstract | This study considers an important aspect of corporate governance: the relationship between cash flow rights and dividend payout policy of listed family firms in Taiwan, an economy characterized by a predominance of family-controlled firms. Dividend payout levels are important because they are crucial to governing the firm and managing its investments. The empirical results show that at a low level of controlling families’ cash flow rights, the threat to lose control at any time makes controlling families claim more in dividends. This yields a positive relationship between dividend payout and the cash flow rights of controlling families at this level. Meanwhile, at a moderate level of controlling families’ cash flow rights, the entrenchment effect becomes more robust and creates a negative relationship with dividend payout. Finally, at the very highest level of controlling families’ cash flow rights, excessive firm-specific risk again helps to again create a positive relationship. This nonmonotonic relationship between controlling family cash flow rights and dividend payout also holds for financially mature firms that have a high earned to contributed capital mix. |
| Starting Page | 39 |
| Ending Page | 58 |
| Page Count | 20 |
| File Format | |
| ISSN | 02174561 |
| Journal | Asia Pacific Journal of Management |
| Volume Number | 29 |
| Issue Number | 1 |
| e-ISSN | 15729958 |
| Language | English |
| Publisher | Springer US |
| Publisher Date | 2012-01-10 |
| Publisher Place | Boston |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Corporate governance Dividend policy Family ownership Life-cycle theory Principal-principal conflict Business/Management Science Management/Business for Professionals |
| Content Type | Text |
| Resource Type | Article |
| Subject | Business and International Management Economics, Econometrics and Finance Strategy and Management |
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