Dividend payouts and family-controlled firms—The effect of culture on business

Manhwa Wu, Yensen Ni and Paoyu Huang

The Quarterly Review of Economics and Finance, 2020, vol. 75, issue C, 221-228

Abstract: Our paper reveals that family-controlled firms pay less cash dividends than non-family-controlled firms in Taiwan, which differs from moderating proxy problems by increasing dividend payouts due to reduced free cash flow. These family-controlled firms might not be regarded as a problem due to the improved corporate governance and high firm value in Taiwan, which is contrary to relevant studies. Dividend payouts for family-controlled firms in the West and East, such as asset allocation, might be affected by various factors, including culture, nationality, and philosophy, which are seldom considered deliberately in existing literature.

Keywords: Dividend payouts; Culture; Financial performance; Family-controlled firms (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:75:y:2020:i:c:p:221-228

DOI: 10.1016/j.qref.2019.03.004

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