Artikel
Family control, institutional environment and cash dividend policy: Evidence from China
Using a sample of 1486 Chinese A-share listed companies for the period 2004-2008, this study empirically tests the impact of family control, institutional environment and their interaction on the cash dividend policy of listed companies. Our results indicate that (1) family firms have a lower cash dividend payout ratio and propensity to pay dividends than non-family firms; (2) a favorable regional institutional environment has a significant positive impact on the cash dividend payout ratio and propensity to pay dividends of listed companies; and (3) the impact of the regional institutional environment on cash dividends is stronger in family firms than in non-family firms. Somewhat surprisingly, we find that controlling family shareholders in China may intensify Agency Problem I (the owner-manager conflict) rather than Agency Problem II (the controlling shareholder-minority shareholder conflict), and thus have a significant negative impact on cash dividend policy. In contrast, a favorable regional institutional environment plays a positive corporate governance role in mitigating Agency Problem I and encouraging family firms to pay cash dividends.
- Language
-
Englisch
- Bibliographic citation
-
Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 4 ; Year: 2011 ; Issue: 1/2 ; Pages: 29-46 ; Amsterdam: Elsevier
- Classification
-
Management
Consumer Protection
Payout Policy
Energy, Environmental, Health, and Safety Law
- Subject
-
Family control
Institutional environment
Cash dividend
Corporate governance
- Event
-
Geistige Schöpfung
- (who)
-
Wei, Zhihua
Wu, Shinong
Li, Changqing
Chen, Wei
- Event
-
Veröffentlichung
- (who)
-
Elsevier
- (where)
-
Amsterdam
- (when)
-
2011
- DOI
-
doi:10.1016/j.cjar.2011.04.001
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Wei, Zhihua
- Wu, Shinong
- Li, Changqing
- Chen, Wei
- Elsevier
Time of origin
- 2011
Other Objects (12)
Catering dividend: Dividend premium and free cash flow on dividend policy
Free Cash Flow, Signaling and the Dividend Puzzle
Bank dividend restrictions and banks' institutional investors
Bank dividend restrictions and banks' institutional investors
Dividend policy and institutional holdings: Evidence from Australia
Dividend Announcements Reconsidered: Dividend Changes versus Dividend Surprises
Dividend announcements reconsidered dividend changes versus dividend surprises
Dividend announcements reconsidered: Dividend changes versus dividend surprises
Institutional hostility to cash and COVID-19
Family ownership and corporate environmental responsibility: The contingent effect of venture capital and institutional environment
Corporate governance and cash holdings: Family versus non-family controlled firms
Corporate cash holdings: Evidence from a different institutional setting
Catering dividend: Dividend premium and free cash flow on dividend policy
Free Cash Flow, Signaling and the Dividend Puzzle
Bank dividend restrictions and banks' institutional investors
Bank dividend restrictions and banks' institutional investors
Dividend policy and institutional holdings: Evidence from Australia
Dividend Announcements Reconsidered: Dividend Changes versus Dividend Surprises
Dividend announcements reconsidered dividend changes versus dividend surprises
Dividend announcements reconsidered: Dividend changes versus dividend surprises
Institutional hostility to cash and COVID-19
Family ownership and corporate environmental responsibility: The contingent effect of venture capital and institutional environment
Corporate governance and cash holdings: Family versus non-family controlled firms
Corporate cash holdings: Evidence from a different institutional setting
Catering dividend: Dividend premium and free cash flow on dividend policy
Free Cash Flow, Signaling and the Dividend Puzzle
Bank dividend restrictions and banks' institutional investors
Bank dividend restrictions and banks' institutional investors
Dividend policy and institutional holdings: Evidence from Australia
Dividend Announcements Reconsidered: Dividend Changes versus Dividend Surprises
Dividend announcements reconsidered dividend changes versus dividend surprises
Dividend announcements reconsidered: Dividend changes versus dividend surprises
Institutional hostility to cash and COVID-19
Family ownership and corporate environmental responsibility: The contingent effect of venture capital and institutional environment
Corporate governance and cash holdings: Family versus non-family controlled firms