Quotation Gugler, Klaus. 2003. Corporate Governance, Dividend Smoothing, and the Interrelation between Dividends, R&D, and Capital Investment. Journal of Banking and Finance 27 (7): 1297-1321.


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Abstract

This paper investigates the relationship between dividends and the ownership and control structure of the firm. For a panel of Austrian firms over the 1991/99 period, we find that statecontrolled firms engage in dividend smoothing, while family-controlled firms do not. The latter choose significantly lower target payout levels. Consistently, state-controlled firms are most reluctant and family-controlled firms are least reluctant to cut dividends when cuts are warranted. The dividend behavior of bank- and foreign-controlled firms lies in between stateand family-controlled firms. This is consistent with the expected "ranking" of information asymmetries and managerial agency costs. The above results hold for firms with good investment opportunities. We find that firms with low growth opportunities optimally disgorge cash irrespective of who controls the firm.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Banking and Finance
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-A, VW-B, WH-A
Language English
Title Corporate Governance, Dividend Smoothing, and the Interrelation between Dividends, R&D, and Capital Investment
Volume 27
Number 7
Year 2003
Page from 1297
Page to 1321

Associations

People
Gugler, Klaus (Details)
Organization
Research Institute for Regulatory Economics FI (Details)
Institute for Quantitative Economics IN (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5370 Industrial economics (Details)
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