Use this identifier to quote or link this document: http://hdl.handle.net/2072/209906

Stockholder conflicts and dividends
Berzins, Janis; Stacescu, Bogdan; Bohren, Oyvind
Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa
Conflicts of interest between majority and minority stockholders affect a large proportion of firms in any economy, but has received little attention in the empirical literature. We examine the link between the potential for such conflicts and the firm's payout policy on a large sample of Norwegian private firms with controlling stockholders and detailed ownership data. Our evidence shows that the stronger the potential conflict between the stockholders, the higher the proportion of earnings paid out as dividends. This tendency to reduce stockholder conflicts by dividend payout is more pronounced when the minority is diffuse and when a family's majority block is held by a single family member. We also find evidence that a minority-friendly payout policy is associated with higher future minority investment in the firm. These results are consistent with the notion that potential agency costs of ownership are mitigated by dividend policy when the majority stockholder benefits from not exploiting the minority.
2012-03
336 - Finances. Banca. Moneda. Borsa
Dividends
Accionistes minoritaris
Empreses, Direcció general d'
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/3.0/es/
42 p.
Working Paper
Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa);12/2
         

Full text files in this document

Files Size Format
DT12_2.pdf 219.0 KB PDF

Show full item record

 

Coordination

 

Supporters