Artikel

Assets expropriation via cash dividends? Free cash flow or tunneling

This study solves the dispute between the free cash flow and tunneling hypotheses in explaining the role of cash dividends on asset expropriation of the controlling shareholders in Chinese listed firms. Investors value more the cash dividends and the cash holdings of firms with lower ownership control than those of firms with higher ownership control. This is more consistent with the tunneling hypothesis. However, when investment opportunities are considered, the free cash flow hypothesis better explains firms' dividend policy. Investors value more the cash dividends of firms with fewer investment opportunities and higher probability of expropriation. This study indicates that investors are concerned with the potential asset expropriation through cash payouts, unless firms possess high growth opportunities.

Sprache
Englisch

Erschienen in
Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 3 ; Year: 2010 ; Pages: 71-93 ; Amsterdam: Elsevier

Klassifikation
Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Payout Policy
Thema
Cash holdings
Cash dividends
Ownership control
Asset tunneling
Agency problems

Ereignis
Geistige Schöpfung
(wer)
Chiou, Jeng-Ren
Chen, Yenn-Ru
Huang, Ting-Chiao
Ereignis
Veröffentlichung
(wer)
Elsevier
(wo)
Amsterdam
(wann)
2010

DOI
doi:10.1016/S1755-3091(13)60020-9
Handle
Letzte Aktualisierung
10.03.2025, 11:45 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Artikel

Beteiligte

  • Chiou, Jeng-Ren
  • Chen, Yenn-Ru
  • Huang, Ting-Chiao
  • Elsevier

Entstanden

  • 2010

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