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Dividend Policy, Corporate Control and the Tax Status of the Controlling Shareholder

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Author Info

  • Christian Andres

    (WHU – Otto Beisheim School of Management)

  • André Betzer

    ()
    (Schumpeter School of Business and Economics, Bergische Universität Wuppertal)

  • Marc Goergen

    (Cardiff Business School and European Corporate Governance Institute (ECGI))

Abstract

This paper studies the impact of the concentration of control, the type of controlling shareholder and the dividend tax preference of the controlling shareholder on dividend policy for a panel of 220 German firms over 1984-2005. While the concentration of control does not have an effect on the dividend payout, there is strong evidence that the type of controlling shareholder matters as family controlled firms have high dividend payouts whereas bank controlled firms have low dividend payouts. However, there is no evidence that the tax preference of the large shareholder has an impact on the dividend decision.

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Bibliographic Info

Paper provided by Universitätsbibliothek Wuppertal, University Library in its series Schumpeter Discussion Papers with number sdp12006.

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Length: 51
Date of creation: May 2012
Date of revision:
Handle: RePEc:bwu:schdps:sdp12006

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Web page: http://elpub.bib.uni-wuppertal.de

Related research

Keywords: dividend policy; payout policy; Lintner dividend model; tax clientele effects; corporate governance;

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