Effects of public pension funds and Stewardship Code on dividends and firm value: evidence from National Pension Service of Korea

Yun Kyung Kim and Yunsung Koh

Asia Pacific Business Review, 2020, vol. 26, issue 4, 453-477

Abstract: This study examines the effects of National Pension Service (NPS) of Korea and the Stewardship Code on dividend policy and firm value. We find that NPS increases the dividend yield of firms, and the effects are more pronounced after the implementation of the code. Furthermore, the code forces firms to pay involuntarily high dividends compared to industry rivals. Firm value is negatively associated with the ownership of NPS which is exacerbated after the code. Results highlight the agency problem in public pension funds that the government pursues its own interests rather than those of the beneficiaries.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13602381.2020.1781414 (text/html)
Access to full text is restricted to subscribers.

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:taf:apbizr:v:26:y:2020:i:4:p:453-477

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FAPB20

DOI: 10.1080/13602381.2020.1781414

Access Statistics for this article

Asia Pacific Business Review is currently edited by Professor Chris Rowley and Malcolm Warner

More articles in Asia Pacific Business Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().