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Dividend policy, corporate control and tax clienteles: The case of Germany

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  • Andres, Christian
  • Betzer, André
  • Goergen, Marc

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 dividend preference of the large shareholder has an impact on the dividend decision. --

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Bibliographic Info

Paper provided by Center for Financial Studies (CFS) in its series CFS Working Paper Series with number 2011/16.

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Date of creation: 2011
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Handle: RePEc:zbw:cfswop:201116

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Related research

Keywords: Dividend Policy; Payout Policy; Lintner Dividend Model; Tax Clientele Effects; Corporate Governance;

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  20. Crutchley, Claire E. & Jensen, Marlin R. H. & JaheraJr., John S. & Raymond, Jennie E., 1999. "Agency problems and the simultaneity of financial decision making: The role of institutional ownership," International Review of Financial Analysis, Elsevier, vol. 8(2), pages 177-197, June.
  21. Larry H. P. Lang & Mara Faccio & Leslie Young, 2001. "Dividends and Expropriation," American Economic Review, American Economic Association, vol. 91(1), pages 54-78, March.
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  23. Dempsey, Stephen J & Laber, Gene, 1992. "Effects of Agency and Transaction Costs on Dividend Payout Ratios: Further Evidence of the Agency-Transaction Cost Hypothesis," Journal of Financial Research, Southern Finance Association & Southwestern Finance Association, vol. 15(4), pages 317-21, Winter.
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