Multiple large shareholders and dividends: Evidence from China

Jiang, Fuxiu; Cai, Xinni; Jiang, Zhan; Nofsinger, John R.

doi:10.1016/j.pacfin.2019.101201

Cited by 51 publications

(34 citation statements)

References 46 publications

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“…To save space, all the robustness checks are not shown. First, we estimate Equation (1) using the Tobit regression estimator following the study of Francis et al (2011), Al-Malkawi et al (2014, Jiang et al (2019), andDriver et al (2020), which consider that dividend payout are left-censored at zero. We find the results unchanged.…”

Section: Robustness Checksmentioning

confidence: 99%

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: Robustness Checksmentioning

confidence: 99%

Women in a Dual Board System and Dividend Policy

Risfandy¹,

Radika²,

Wardhana³

2021

BEMP

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“…Although there has been a debate on the merits of major shareholders, empirical evidence on the link between corporate governance and firm performance almost exclusively refers to European countries (Italy: Volpin, 2002; Rossi et al , 2018; Spain: Gutiérrez et al , 2012; Finland: Maury and Pajuste, 2005; France: Boubaker, 2007). In recent years, the impact of multiple large shareholders in the Asian context (especially in China) has received significant scholarly attention (Ouyang et al , 2019; Jiang et al , 2019; Cao et al , 2019). Contrastingly, there has been little research focusing on multiple large shareholders in developing countries, especially in the Middle East and North Africa (MENA).…”

Section: Introductionmentioning

confidence: 99%

Multiple large shareholders and bank stability: the case of MENA banks

Boussaada

2021

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PurposeThis study aims to investigate how multiple large shareholders individually and interactively influence Middle East and North Africa (MENA) bank stability.Design/methodology/approachThe empirical framework is based on a generalized dynamic two-step system and utilizes the method of moments estimation to analyze a panel dataset of 532 bank-year observations over the 2004–2017 period.FindingsThe estimation results show that large shareholders are crucial in explaining the differences in bank stability among MENA banks. Specifically, the first- and second-largest shareholders exacerbate bank instability. However, we found that the third-largest shareholder enhances bank stability. Additionally, the coalition between the two largest shareholders increases the moral hazard problem in MENA banks and significantly decreases stability. Meanwhile, the interaction between the three largest shareholders is associated with a control contestability problem, which impels better bank stability. The results support the dispersion effect of multiple large shareholders in MENA countries.Originality/valueThe role of large shareholders in corporate governance is widely recognized. However, very little is known about the role and the real impact that multiple large shareholders may have on the banking sector. To the best of the authors' knowledge, this work is the first to analyze the relationship between multiple large shareholders and bank stability in the MENA region.

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“…Moreover, as the choice of ownership structure may not be random [57], our study may encounter the endogenous problems of sample self-selection. Hence, we followed the previous literature [58,59] and used the difference-in-differences model (DID) to address potential reverse causal endogeneity concerns, using Heckman two-stage regression mitigate sample selection bias endogeneity concerns. We discuss these analyses in detail below.…”

Section: Endogeneitymentioning

confidence: 99%

“…To better establish the causal relationship between ESOPs and CSR and mitigate the biased estimation caused by missing variables that simultaneously influence firms with and without ESOPs, we followed previous studies [57,58] and employed the staggered DID method to estimate the difference in CSR before and after the ESOPs were initiated. Based on the exogenous event that led the CSRC to initiate the ESOPs, we examined the difference in CSR between the experimental group and the control group before and after the adoption of ESOPs.…”

Section: Difference-in-differences Modelmentioning

confidence: 99%

Do Employee Stock Ownership Plans Affect Corporate Social Responsibility? Evidence from China

Zhou

Wei

2022

IJERPH

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Few studies have discussed the relationship between employee stock ownership plans (ESOPs) and corporate social responsibility (CSR). Using a sample of 895 A-share public firms in China, this research examines the effects of ESOPs on CSR, and the moderating effects of wedge structure and firm size on this relationship. This research mainly used the OLS model to test the research hypotheses, and all regressions were performed in Stata15. The results show that the ESOPs of Chinese public firms provide external economic incentives and internal psychological incentives for employees, increase their motivation to engage in CSR activities, and ultimately contribute to CSR. At the same time, this research finds that this relationship is stronger for firms without wedge structure and small firms. This research provides insights for understanding the relationship between ESOPs and CSR and has important managerial implications for firms to pay attention to the interests of employees to achieve sustainable development.

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Multiple large shareholders and dividends: Evidence from China

Cited by 51 publications

References 46 publications

Women in a Dual Board System and Dividend Policy

Women in a Dual Board System and Dividend Policy

Multiple large shareholders and bank stability: the case of MENA banks

Do Employee Stock Ownership Plans Affect Corporate Social Responsibility? Evidence from China

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