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    The relationship between dividend payout and corporate governance along the corporate life-cycle


    O'Connor, Thomas (2013) The relationship between dividend payout and corporate governance along the corporate life-cycle. International Journal of Corporate Governance, 4 (1). pp. 20-50. ISSN 1754-3037

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    Abstract

    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.

    Item Type: Article
    Keywords: corporate governance; agency models of dividends; corporate life-cycle; creditor rights; emerging markets;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 11394
    Identification Number: https://doi.org/10.1504/IJCG.2013.055175
    Depositing User: Thomas O'Connor
    Date Deposited: 24 Oct 2019 16:28
    Journal or Publication Title: International Journal of Corporate Governance
    Publisher: Inderscience
    Refereed: Yes
    URI:

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