The Effect of Managerial Ability on a Firms Dividend Policy: Evidence from Korea

Soo Yeon Park and Younghyo Song
Additional contact information
Soo Yeon Park: Chung-Ang University, Postal: Chung-Ang University
Younghyo Song: Korea University, Postal: Korea University

International Journal of Entrepreneurship, 2019, vol. 23, issue 1

Abstract: This study examined the effect of managerial ability on a firm’s dividend policy. In addition, this study investigated how the type of manager and their different risk characteristicsrepresented in this study by professional CEOs and owner CEOs-affect the relationship between managerial ability and the firm’s dividend policy. We used 4,593 firm-year observations from the KOSPI for the period 2003–2013, lending our findings considerable power. The results showed that managerial ability was significantly positively associated with a firm’s dividend policy, as proxied by the propensity for dividend payments. Moreover, the positive relationship between managerial ability and dividend payments was particularly pronounced in firms with professional CEOs. These results suggest that professional CEOs strengthen the positive effect of managerial ability on increased dividend payments.

Keywords: Managerial Ability; Dividend Policy; Professional CEO; Owner CEO; DEA Analysis. (search for similar items in EconPapers)
JEL-codes: M21 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.abacademies.org/articles/the-effect-of ... from-korea-8056.html Full text (text/html)

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:ris:ijentr:0093

Access Statistics for this article

International Journal of Entrepreneurship is currently edited by Nicolaj Hannesbo Petersen

More articles in International Journal of Entrepreneurship from Allied Business Academies
Bibliographic data for series maintained by Mouawiya Al Awad ().