EconPapers    
Economics at your fingertips  
 

The effect of ownership concentration and composition on dividends: Evidence from Latin America

Maximiliano Gonzalez, Carlos Molina Manzano (), Eduardo Pablo and John W. Rosso

Emerging Markets Review, 2017, vol. 30, issue C, 1-18

Abstract: We analyze a unique data set of publicly traded firms based in six Latin American countries to study the joint effect of ownership concentration and composition on dividend policy. We find that when ownership concentration is high and the largest investor is identified as an individual, firms tend to pay fewer dividends consistent with individual investors extracting benefits from minority shareholders. However, if the largest shareholder is based in a common law country, the dividend paid is significantly higher. Finally, greater ownership by the second largest shareholder decreases firm dividends suggesting the monitoring role of a large shareholder.

Keywords: Dividends; Ownership concentration; International corporate governance (search for similar items in EconPapers)
JEL-codes: G34 G35 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014116300668
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:30:y:2017:i:c:p:1-18

DOI: 10.1016/j.ememar.2016.08.018

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-05-02
Handle: RePEc:eee:ememar:v:30:y:2017:i:c:p:1-18