The Global Financial Crisis, Family Control, and Dividend Policy

Financial Management

Volumn 45, Issue 2, 2016, Pages 291-313

  Attig, Najah ^a   Boubakri, Narjess ^b   El Ghoul, Sadok ^c   Guedhami, Omrane ^d  

^a SAINT MARY S UNIVERSITY   (Canada)

^b AMERICAN UNIVERSITY OF SHARJAH   (United Arab Emirates)

^c UNIVERSITY OF ALBERTA   (Canada)

^d UNIVERSITY OF SOUTH CAROLINA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84965182811     PISSN: 00463892     EISSN: 1755053X     Source Type: Journal    
DOI: 10.1111/fima.12115     Document Type: Article

References (51)

1. Almeida, H., M. Campello, B. Laranjeira, and S. Weisbenner, 2012, “Corporate Debt Maturity and the Real Effects of the 2007 Credit Crisis,” Critical Finance Review 1, 3–58.
2. Almeida, H.V. and D. Wolfenzon, 2006, “A Theory of Pyramidal Ownership and Family Business Groups,” Journal of Finance 61, 2637–2680.
3. Anderson, R.C., A. Duru, and D.M. Reeb, 2009, “Founders, Heirs, and Corporate Opacity,” Journal of Financial Economics 92, 205–222.
4. Anderson, R.C., A. Duru, and D.M. Reeb, 2012, “Investment Policy in Family Controlled Firms,” Journal of Banking and Finance 36, 1744–1758.
5. Anderson, R.C. and D.M. Reeb, 2003, “Founding-Family Ownership and Firm Performance: Evidence from the S&P 500,” Journal of Finance 58, 1301–1328.
6. Attig, N., W-M. Fong, L. Lang, and Y. Gadhoum, 2006, “Effects of Large Shareholding on Information Asymmetry and Stock Liquidity,” Journal of Banking and Finance 30, 2875–2892.
7. Bae, K.H., J.S. Baek, J.K. Kang, and W.L. Liu, 2012, “Do Controlling Shareholders’ Expropriation Incentives Imply a Link between Corporate Governance and Firm Value? Theory and Evidence,” Journal of Financial Economics 105, 412–435.
8. Barth, E., T. Gulbrandsen, and P. Schone, 2005, “Family Ownership and Productivity: The Role of Owner-Management,” Journal of Corporate Finance 11, 107–127.
9. Bhattacharya, S., 1979, “Imperfect Information, Dividend Policy, and ‘The Bird in the Hand’ Fallacy,” Bell Journal of Economics 10, 259–270.
10. Boubakri, N., O. Guedhami, and D. Mishra, 2010, “Family Control and the Implied Cost of Equity: Evidence before and after the Asian Financial Crisis,” Journal of International Business Studies 41, 451–474.
11. Brockman, P. and E. Unlu, 2009, “Dividend Policy, Creditor Rights, and the Agency Costs of Debt,” Journal of Financial Economics 92, 276–299.
12. Brown, J.R. and B.C. Petersen, 2011, “Cash Holdings and R&D Smoothing,” Journal of Corporate Finance 17, 694–709.
13. Campbell, J.Y., 1996, “Understanding Risk and Return,” Journal of Political Economy 104, 298–345.
14. Campello, M., J. Graham, and C. Harvey, 2010, “The Real Effects of Financial Constraints: Evidence from a Financial Crisis,” Journal of Financial Economics 97, 470–497.
15. Carney, R.W. and T.B. Child, 2013, “Changes to the Ownership and Control of East Asian Corporations between 1996 and 2008: The Primacy of Politics,” Journal of Financial Economics 107, 494–513.
16. Chay, J.B. and J. Suh, 2009, “Payout Policy and Cash-Flow Uncertainty,” Journal of Financial Economics 93, 88–107.
17. Chen, K.C.W., Z. Chen, and K.C.J. Wei, 2011, “Agency Costs of Free Cash Flow and the Effect of Shareholder Rights on the Implied Cost of Equity Capital,” Journal of Financial and Quantitative Analysis 46, 171–207.
18. Chen, Z., Y. Cheung, A. Stouraitis, and A.W.S. Wong, 2005, “Ownership Concentration, Firm Performance and Dividend Policy in Hong Kong,” Pacific-Basin Finance Journal 13, 431–449.
19. Claessens, S., S. Djankov, J. Fan, and L. Lang, 2002, “Disentangling the Incentive and Entrenchment Effects of Large Shareholding,” Journal of Finance 57, 2741–2771.
20. Claessens, S., S. Djankov, and L. Lang, 2000, “The Separation of Ownership and Control in East Asian Corporations,” Journal of Financial Economics 52, 81–112.
21. Duchin, R., O. Ozbas, and B. Sensoy, 2010, “Costly External Finance, Corporate Investment, and the Subprime Mortgage Credit Crisis,” Journal of Financial Economics 97, 418–435.
22. Easterbrook, F., 1984, “Two Agency-Cost Explanations of Dividends,” American Economic Review 74, 650–659.
23. Faccio, M. and L. Lang, 2002, “The Ultimate Ownership of Western European Corporations,” Journal of Financial Economics 65, 365–395.
24. Faccio, M., L. Lang, and L. Young, 2001, “Dividends and Expropriation,” American Economic Review 91, 54–78.
25. Faccio, M., M.-T. Marchica, and R. Mura, 2011, “Large Shareholder Diversification and Corporate Risk-Taking,” Review of Financial Studies 24, 3601–3641.
26. Fan, J. and T.J. Wong, 2002, “Corporate Ownership Structure and the Informativeness of Accounting Earnings in East Asia,” Journal of Accounting and Economics 33, 401–425.
27. Guedhami, O., J. Pittman, and W. Saffar, 2009, “Auditor Choice in Privatized Firms: Empirical Evidence on the Role of State and Foreign Owners,” Journal of Accounting and Economics 48, 151–171.
28. Gugler, K., 2003, “Corporate Governance, Dividend Payout Policy, and the Interrelation between Dividends, R&D, and Capital Investment,” Journal of Banking and Finance 27, 1297–1321.
29. Gugler, K. and B.B. Yurtoglu, 2003, “Corporate Governance and Dividend Payout Policy in Germany,” European Economic Review 47, 731–758.
30. Harford, J., S. Mansi, and W. Maxwell, 2008, “Corporate Governance and a Firm's Cash Holdings,” Journal of Financial Economics 87, 535–555.
31. Hu, Y., D.D. Wang, and S. Zhang, 2008, “Founding Family Ownership, Management and Payout Policy,” Annual Meeting of American Accounting Association, Anaheim, CA.
32. Isakov, D. and J-P. Weisskopf, 2015, “Pay-Out Policies in Founding Family Firms,” Journal of Corporate Finance 33, 330–344.
33. Jensen, M.C., 1986, “Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers,” American Economic Review 76, 323–329.
34. Johnson, S., P.D. Boone, A. Breach, and E. Friedman, 2000, “Corporate Governance in the Asian Financial Crisis,” Journal of Financial Economics 58, 141–186.
35. Keynes, J.M., 1936, The General Theory of Employment, Interest, and Money, London, Macmillan.
36. Lang, L.H.P., R.M. Stulz, and R.A. Walkling, 1991, “A Test of the Free Cash Flow Hypothesis: The Case of Bidder Returns,” Journal of Financial Economics 29, 315–335.
37. Lang, M., K. Lins, and D. Miller, 2004, “Concentrated Control, Analyst Following, and Valuation: Do Analysts Matter Most When Investors Are Protected Least?” Journal of Accounting Research 42, 589–623.
38. La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R. Vishny, 1998, “Law and Finance,” Journal of Political Economy 106, 1113–1155.
39. La Porta, R., F. Lopez-de-Silanes, A. Shleifer, and R. Vishny, 2000, “Agency Problems and Dividend Policies around the World,” Journal of Finance 55, 1–33.
40. Lemmon, M., M. Roberts, and J. Zender, 2008, “Back to the Beginning: Persistence and the Cross-Sectional Distribution of Capital Structure,” Journal of Finance 63, 1–37.
41. Lins, K.V., P. Volpin, and H.F. Wagner, 2013, “Does Family Control Matter? International Evidence from the 2008–2009 Financial Crisis,” Review of Financial Studies 26, 2538–2619.
42. Masulis, R.W., P.K. Pham, and J. Zein, 2011, “Family Business Groups around the World: Financing Advantages, Control Motivations, and Organizational Choices,” Review of Financial Studies 24, 3556–3600.
43. Miller, M. and K. Rock, 1985, “Dividend Policy under Asymmetric Information,” Journal of Finance 40, 1031–1051.
44. Mitton, T., 2002, “A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis,” Journal of Financial Economics 64, 215–241.
45. Opler, T., L. Pinkowitz, R. Stulz, and R. Williamson, 1999, “The Determinants and Implications of Corporate Cash Holdings,” Journal of Financial Economics 52, 3–46.
46. Pindado, J., I. Requejo, and C. de la Torre, 2012, “Do Family Firms Use Dividend Policy as a Governance Mechanism? Evidence from the Euro Zone,” Corporate Governance: An International Review 20, 413–431.
47. Pindado, J. and C. de la Torre, 2008, “Financial Decisions as Determinants of Ownership Structure: Evidence from Spanish Family Controlled Firms,” Managerial Finance 34, 868–885.
48. Rozeff, M.S., 1982, “Growth, Beta and Agency Costs as Determinants of Dividend Payout Ratios,” Journal of Financial Research 5, 249–259.
49. Setia-Atmaja, L., G.A. Tanewski, and M. Skully, 2009, “The Role of Dividends, Debt, and Board Structure in the Governance of Family Controlled Firms,” Journal of Business Finance and Accounting 36, 863–898.
50. Shleifer, A. and R. Vishny, 1986, “Large Shareholders and Corporate Control,” Journal of Political Economy 94, 461–488.
51. Zhou, X., 2001, “Understanding the Determinants of Managerial Ownership and the Link between Ownership and Performance: Comment,” Journal of Financial Economics 62, 559–572.