Majority support of shareholders, monitoring incentive, and dividend policy

Mori, Naoya; Ikeda, Naoshi

doi:10.1016/j.jcorpfin.2014.10.015

Cited by 14 publications

(8 citation statements)

References 33 publications

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“…Ownership structure emerges as an important factor that could influence on various financial decisions taken by the firms including dividend payments. When the legal environment does not provide sufficient protection for outside investors, entrepreneurs and original owners are forced to maintain large positions in their companies which results in concentration of firm ownership (La Porta et al, 2000;Mori and Ikeda, 2015). The ownership pattern whether it is institutional or family determines the control and influence of shareholders in the firm (Mehboob et al, 2015).…”

Section: Ownership Structure and Dividend Smoothingmentioning

confidence: 99%

Corporate Governance, Ownership Structure and Dividend Smoothing: The Mediating Role of Family Ownership and Board Diversity in Emerging Markets

Ahmed¹,

Shah²,

Bhatti³

2020

ERSJ

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Purpose:The study attempts to explore the determinants of dividend smoothing behavior of firms by using firm's specific characteristics, corporate governance and ownership structure variables as determinants of dividend smoothing in emerging markets due to their unique features from Western markets. The current study is undertaken to fill this gap in the literature. Design/methodology/approach: In order to achieve the research objectives panel data (2009)(2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018) of more than 1000 Asian firms were analyzed by using Statistical techniques such as pool, fixed and random models. Findings: Based on gender critical mass theory, the study finds that the presence of gender critical mass is positive and significantly associated with firm dividend smoothing behavior; whereas, presence of fewer women depicts negative or insignificant association with dividend smoothing behavior. Importantly, the study also finds moderating role of gender diversity between family ownership and firm's dividend smoothing behavior. Furthermore, contrary to the agency theory based on explanations of dividend smoothing, firms with family ownership smooth dividend more in emerging markets. Practical implications: This paper helps out to the current as well as future potential investors to make better decision in such a changing economy as well as to help investors in selecting better investment opportunity to make their investment more profitable. Originality/value: The current study is the first of its kind to investigate dividend-smoothing behavior for more than 1000 firms of emerging Asian countries based on cross country analysis.

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Section: Ownership Structure and Dividend Smoothingmentioning

confidence: 99%

Corporate Governance, Ownership Structure and Dividend Smoothing: The Mediating Role of Family Ownership and Board Diversity in Emerging Markets

Ahmed¹,

Shah²,

Bhatti³

2020

ERSJ

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“…The negative and significant effect of Equity/Total Assets is well established in literature and confirmed by our models. On the governance side, large equity size usually suggests higher shareholder control over the activities of the institution that usually limit the ability of managers to change business models (Dell'Arriccia and Marquez, 2010;Iannotta et al, 2007;Manzaneque et al, 2015;Mori and Ikeda, 2015). On the market side, large amount of equity, probably amplified by assets prices boom in the pre-crisis period, would facilitate the search for funding and therefore the ability of the institution to meet their strategy when actively managing their balance sheets (Adrian and Shin, 2010).…”

Section: Switch Analysismentioning

confidence: 99%

Peer-Group Detection of Banks and Resilience to Distress

2016

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The paper looks at the importance of the true business model in shaping the risk profile of financial institutions. We adopt a novel indirect clustering approach to enrich the classic bank business model classification on a global data set including about 11,000 banks, both listed and non-listed representing more than 180 countries over the period 2005-2014. A comprehensive list of global distress events, which combines bankruptcies, liquidations, defaults, distressed mergers, and public bailouts, is regressed against financial statement ratios (i.e. proxies for CAMELS) and controlling for macro and sectoral effects using a rare-event logit model. Our findings suggest that individual characteristics along with macro and sectoral factors contribute differently, sometimes with opposite sign, to the likelihood of distress and to the volatility of business models with the exception of liquidity whose contribution appears exogenous to business model choice. By capturing the switching behaviour across groups, we find that business model volatility exacerbates vulnerability and distress, especially if moving from wholesale-oriented to deposit oriented groups.

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“…Recent literature pointed out that it still remains an open topic of study with important questions that deserve attention about dividend policy determinants (Gopalan, Nanda, & Seru, 2014;L. E. Harris, Hartzmark, & Solomon, 2015;Javakhadze, Ferris, & Sen, 2014;Mori & Ikeda, 2015;Renneboog & Trojanowski, 2007).…”

Section: Introductionmentioning

confidence: 99%

“…Dividend policy is also related to the availability of internal funds for investment funding which is an important source of financing according to the Pecking order theory. Dividend payout will (Florackis, Kanas, & Kostakis, 2015;Gopalan et al, 2014;Harada & Nguyen, 2011;Jensen, 1986;Khan, 2006;La Porta et al, 2000;Lee, Liu, Roll, & Subrahmanyam, 2006;Mori & Ikeda, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Nonfinancial Firms as Large Shareholder Use Dividend Policy for Management Monitoring in Brazil

Crisóstomo

Brandão

2018

FSRJ

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The paper analyzes whether nonfinancial firms as large blockholders of the Brazilian firm shape dividend policy. Under the Agency Theoretical framework a set of good corporate governance practices is suggested as able to control management activity and prevent managers from incurring in moral hazard problems and the emergence of excessive management power as predicted by the Managerial Power Hypothesis. In this context, the Management Monitoring Hypothesis proposes that dividend policy may be used as a management control mechanism given that dividend distribution affects the free cash flow available for managers.

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Majority support of shareholders, monitoring incentive, and dividend policy

Cited by 14 publications

References 33 publications

Corporate Governance, Ownership Structure and Dividend Smoothing: The Mediating Role of Family Ownership and Board Diversity in Emerging Markets

Corporate Governance, Ownership Structure and Dividend Smoothing: The Mediating Role of Family Ownership and Board Diversity in Emerging Markets

Peer-Group Detection of Banks and Resilience to Distress

Nonfinancial Firms as Large Shareholder Use Dividend Policy for Management Monitoring in Brazil

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