Resource title

Dividend policy and institutional ownership : empirical evidence using a propensity score matching estimator

Resource image

image for OpenScout resource :: Dividend policy and institutional ownership : empirical evidence using a propensity score matching estimator

Resource description

This study investigates the relationship between institutional ownership and dividend payout behavior of the firm in Germany. Using a propensity scoring method estimator to control for endogeneity problems, we find evidence that neither institutional ownership nor bank control is statistically significant in determining dividend payouts. These findings are consistent with stylized facts regarding the nature of the German institutional environment, which, through the rights of management to retain a significant percentage of the net profits of the firm and lack of tax incentives, reduce agency costs associated with conflicts between management and shareholder interests regarding use of the firm's free cash flow.

Resource author

Richard Hofler, Julie Ann Elston, Junsoo Lee

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19972

Resource license

Adapt according to the presented license agreement and reference the original author.