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
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Englisch
- Erschienen in
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Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 3 ; Year: 2010 ; Pages: 71-93 ; Amsterdam: Elsevier
- Klassifikation
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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
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Cash holdings
Cash dividends
Ownership control
Asset tunneling
Agency problems
- Ereignis
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Geistige Schöpfung
- (wer)
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Chiou, Jeng-Ren
Chen, Yenn-Ru
Huang, Ting-Chiao
- Ereignis
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Veröffentlichung
- (wer)
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Elsevier
- (wo)
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Amsterdam
- (wann)
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2010
- DOI
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doi:10.1016/S1755-3091(13)60020-9
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:45 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Chiou, Jeng-Ren
- Chen, Yenn-Ru
- Huang, Ting-Chiao
- Elsevier
Entstanden
- 2010