The relationship between dividend payout and corporate governance along the corporate life-cycle Online publication date: Tue, 04-Mar-2014
by Thomas O'Connor
International Journal of Corporate Governance (IJCG), Vol. 4, No. 1, 2013
Abstract: This study explores the relationship between the quality of corporate governance and corporate dividend payout at different stages of the corporate life-cycle. In a sample of 220 firms from 21 emerging market countries, I show that the outcome model of dividends, which predicts that dividend payout increases in the strength of shareholder rights, prevails all along the corporate life-cycle. In a final series of tests, I show that this relationship holds only in instances where corporate governance and creditor rights are strong. Hence, the agency cost of equity and debt version of the outcome model of dividends holds at all stages of the corporate life-cycle. Finally, I find no evidence in support of the equity-only version of the substitution model of dividends.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Corporate Governance (IJCG):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com