This study examines the relationship between cash flow rights and dividend payout policy of listed family firms in Taiwan, an economy characterized by a predominance of family-controlled firms. Dividend payout levels are important because they are crucial to governing the firm and managing its investments. The empirical results show that at a low level of controlling families¡¦ cash flow rights, the threat to lose control any time makes controlling families claim more in dividends. This yields a positive relationship between dividend payout and the cash flow rights of controlling families. Meanwhile, at a moderate level of controlling families¡¦ cash flow rights, the entrenchment effect creates a negative relationship. Finally, at the very highest level of controlling families¡¦ cash flow rights, excessive firm-specific risk again yields a positive relationship. This nonmonotonic relationship between controlling family cash flow rights and dividend payout also holds for financially mature firms that have high earned to contributed capital mix.
| Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0113112-173542 |
| Date | 13 January 2012 |
| Creators | Huang, Yu-ting |
| Contributors | Anlin Chen, Feng-yu Ni, Cheng-Shou Lu, Lanfeng Kao, Miaoling 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-0113112-173542 |
| Rights | unrestricted, Copyright information available at source archive |
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