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Dividend payouts and family-controlled firms—The effect of culture on business

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  • Wu, Manhwa
  • Ni, Yensen
  • Huang, Paoyu

Abstract

Our paper reveals that family-controlled firms pay less cash dividends than non-family-controlled firms in Taiwan, which differs from moderating proxy problems by increasing dividend payouts due to reduced free cash flow. These family-controlled firms might not be regarded as a problem due to the improved corporate governance and high firm value in Taiwan, which is contrary to relevant studies. Dividend payouts for family-controlled firms in the West and East, such as asset allocation, might be affected by various factors, including culture, nationality, and philosophy, which are seldom considered deliberately in existing literature.

Suggested Citation

  • Wu, Manhwa & Ni, Yensen & Huang, Paoyu, 2020. "Dividend payouts and family-controlled firms—The effect of culture on business," The Quarterly Review of Economics and Finance, Elsevier, vol. 75(C), pages 221-228.
    • Handle: RePEc:eee:quaeco:v:75:y:2020:i:c:p:221-228
    DOI: 10.1016/j.qref.2019.03.004
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