Investment, financing and dividend policies are critical for firms. The natures of these three policies may be significantly influenced by bankers on the board. Previous studies have examined the relationship between financing policy and bankers on the board. However, the influence of bankers on the board on corporate investment and dividend policies remains unexamined. Therefore, this paper tries to shed further light on whether bankers on the board affect corporate investment-cash flow sensitivity and dividend policy.
This study collects data from Taiwan publicly traded corporations that have banker directors between 2003 and 2007, together with a matching sample consisting of firms without banker directors. Variables used to construct empirical analyses are from the Taiwan Economic Journal (TEJ) database. The results show that the presence of bankers appointed to corporate directors and the percentage of banker directors positively affect the firm¡¦s investment-cash flow sensitivity positively. This study also finds a negative relationship between the presence of banker directors and the likelihood of dividend payment. The percentage of banker directors has negative impacts on the likelihood of dividend payment and corporate dividend payout ratio.
Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0529110-114754 |
Date | 29 May 2010 |
Creators | Chang, Ching-Ping |
Contributors | Pei-How Huang, Lan-Feng Kao, Wann-Cherng Wang, Chi-Cheng Wu, Ruey-Dang Chang, Yu-Cheng Chen |
Publisher | NSYSU |
Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
Language | English |
Detected Language | English |
Type | text |
Format | application/pdf |
Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0529110-114754 |
Rights | not_available, Copyright information available at source archive |
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