Influential Article Review - How Families Drive Decisions on Dividends

Authors

  • Clay Tran
  • Efan Sutton

Keywords:

Family firm, Family ownership, Dividend, Minority shareholder, Expropriation, Agency conflicts

Abstract

This paper examines corporate governance. We present insights from a highly influential paper. Here are the highlights from this paper: This study examines the impact of family control on the dividend policy of firms in Pakistan, covering the period from 2009 to 2016. It also investigates whether family control moderates the impact of firm-specific factors on the dividend policy. The GMM model for panel data estimation is used. The mean difference univariate analysis shows that family firms differ from nonfamily firms based on financial characteristics. The multivariate analysis shows that family firms pay lower dividends than nonfamily firms. Besides, firm size inversely affects the dividend policy, whereas tangibility positively affects it. Moreover, family control does not moderate the impact of all firm-specific factors on the dividend policy. Overall, family control, size, and tangibility are found to be the main determinants of the dividend policy in Pakistan. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.

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Published

2019-12-18

How to Cite

Tran, C., & Sutton, E. (2019). Influential Article Review - How Families Drive Decisions on Dividends. Journal of Accounting and Finance, 19(10). Retrieved from https://articlegateway.com/index.php/JAF/article/view/3618

Issue

Section

Articles