Effects of country and corporate governance on dividend policy

• Main Authors: Ching-Yi Su, 蘇靜怡
• Other Authors: Jin-Ray Lu
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/r43xws

碩士 === 國立東華大學 === 企業管理學系 === 96 === The objective of this study is to investigate the effects of country and corporate governances on dividend policy. Moreover, the thesis studies that growth opportunity affects the relationship between governance and dividend policy. Therefore, the effects of country and corporate governances on dividend policy also are discussed, when considered company and country growth opportunity. Besides, we also have the interests in that country governance whether is more important to the dividend policy, and which growth opportunity is more important to the dividend policy. According to the study of La Porta et al. (2000), there are two agency models of dividends. One is outcome model and another is substitute model. We apply the data from United States and Chinese stock markets to analyze above issues. From the effect of corporate governance on dividend policy, we found that the Chinese firms’ dividend policy consists with the substitute model and the United States firms’ dividend policy more tends to the outcome model. From the effect of country governance on dividend policy, the regression result shows that it was not apparent consisted with the substitute model. In additional, we consider the company growth opportunity on the effect of corporate governance to dividend policy. The result shows that the Chinese firms consist with the outcome model, but the United States firms are not. The substitute model is considered if country growth opportunity is included into the model. It means that considering the country growth opportunity, the dividend payout of Chinese firms is greater than United States firms. Finally, the empirical result found corporate governance is more important than country governance, and company growth opportunity is more significant regarding to dividend policy.