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

Author

Listed:
  • 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.

Suggested Citation

  • Christian Andres & André Betzer & Marc Goergen, 2012. "Dividend Policy, Corporate Control and the Tax Status of the Controlling Shareholder," Schumpeter Discussion Papers sdp12006, Universitätsbibliothek Wuppertal, University Library.
  • Handle: RePEc:bwu:schdps:sdp12006
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    References listed on IDEAS

    as
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    Cited by:

    1. Andres, Christian & Doumet, Markus & Fernau, Erik & Theissen, Erik, 2015. "The Lintner model revisited: Dividends versus total payouts," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 56-69.

    More about this item

    Keywords

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

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy

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