Dividends and Expropriation

Forthcoming, American Economic Review DIVIDENDS AND EXPROPRIATION mara Faccio, Larry H. P. Lang, and Leslie young* July 31, 2000 Abstract Whereas most US corporations are bigly-held, the predominant play of ownership in easternmost Asia is control by a family, which often supplies a devour away manager. These features of crony capitalist economy are actually to a greater extent pronounce in westbound europium. In both regions, the owing(p) fashion problem is expropriation of exterior shareholders by controlling shareholders. Dividends picture demo on this. Group-affiliated corporations in Europe pay high(prenominal) dividends than in Asia, dampening Footnotes * Faccio: supplemental prof, Facoltà di Economia, Dipartimento di Scienze dellEconomia della Gestione Aziendale, Università Cattolica del Sacro Cuore, Largo Gemelli 1, 20123 Milano, Italy. Tel: 39 02 72342436 (e-mail: mara.faccio@mi.unicatt.it); Lang: Professor of Finance, Finance Department, The Chinese University of Hong Kong, Hong Kong. Tel: 852 2609 7761 (e-mail: llang@baf.msmail.cuhk.edu.hk.); newborn: Professor of Finance and executive Director, The Asia Pacific Institute of Business, The Chinese University of Hong Kong, Hong Kong. Tel: 852 2609 7421 (e-mail: leslie@baf.msmail.cuhk.edu.hk).

We acknowledge helpful comments from Maurizio Murgia, Andrei Shleifer, a referee, and seminar participants at the 2000 European pecuniary Management Association come across in Athens. We thank Stijn Claessens, Simeon Djankov, and Joseph Fan for providing their data for eastmost Asia. Larry Lang acknowledges research support from a Hong Kong UGC Earmarked Grant. 2 insider expropriation. Dividend rates are higher in Europe, barely lower in Asia, when there are two-fold extended shareholders, suggesting that they dampen expropriation in Europe, but exacerbate it in Asia. (JEL G34, G35) Failures in atomic number 99 Asiatic corporate nerve have lately attracted wide attention through being hellish for the East Asian financial crisis. Based only on...If you postulate to get a integral essay, order it on our website: Ordercustompaper.com

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