 Do country-level legal, corporate governance, and cultural characteristics influence the relationship between insider ownership and dividend policy?Woo Sung Kim, Halil Kiymaz and Sekyung Oh Pacific-Basin Finance Journal, 2020, vol. 64, issue C Abstract: We explore how the effects of the change in insider ownership concentration on the dividend policy in different legal, corporate governance, and cultural environments in Asian countries. The severity of agency problems of controlling insiders and outside investors in Asian countries provides a unique circumstance for exploring this issue. Unlike previous findings, we find an inverse U-shaped relation between insider ownership and dividend payouts in Asian countries. Second, we note that Asian firms in common law countries pay higher dividends compared with Asian firms in civil law countries. We further find that countries with more robust corporate governance structure have higher dividend payouts, and there is an inverse U-shaped relation between insider ownership and dividend payouts in Asian countries with more robust corporate governance. Finally, we also find cultural dimension measures play an essential role in payout policy. Keywords: Insider ownership; Dividend payout; Law; Corporate governance; Culture; Asian countries (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:64:y:2020:i:c:s0927538x20306697 DOI: 10.1016/j.pacfin.2020.101457 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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