IDEAS home Printed from https://ideas.repec.org/a/ffe/journl/v6y2009i1p51-72.html
   My bibliography  Save this article

A Note on Stakeholder Theory and Risk: Implications for Corporate Cash Holdings and Dividend Policy

Author

Listed:
  • Gerhard Speckbacher, Paul Wentges

    () (University of Ulm, Germany)

Abstract

According to Zingales (1999), corporate governance is defined as the complex set of constraints that shape the ex-post bargaining over the quasi-rents generated by a fim. This paper argues that corporate cash holdings and dividend policy can be used as soft constraints in this regard in order to mitigate the holdup situation of corporate stakeholders and to enhance incentives for firm-specific investments in the face of high total firm risk. Hence stakehloder theory contributes to answering the question why firms choose conservative financial policies.

Suggested Citation

  • Gerhard Speckbacher, Paul Wentges, 2009. "A Note on Stakeholder Theory and Risk: Implications for Corporate Cash Holdings and Dividend Policy," Frontiers in Finance and Economics, SKEMA Business School, vol. 6(1), pages 51-72, April.
  • Handle: RePEc:ffe:journl:v:6:y:2009:i:1:p:51-72
    as

    Download full text from publisher

    File URL: http://www.ffe.esc-lille.com/papers/Vol6-1ms85Wentges.pdf
    Download Restriction: no

    More about this item

    Keywords

    Corporate cash holding; dividend policy ; holdup; risk; stakeholder theory;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ffe:journl:v:6:y:2009:i:1:p:51-72. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sophie Bodo). General contact details of provider: http://www.ffe.esc-lille.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.