본문 바로가기
KERD
논문KCI 등재

Corporate Governance, Product Market Competition, and Payout Policy

0

조회

0

다운로드

0

인용

0

참고문헌

키워드

초록

This paper investigates how the interaction between internal corporate governance and product market competition affects corporate payout. Empirically, existing papers demonstrate that corporate governance has a significantly negative effect on corporate payout; however, we observe that this negative relation is observed only in less competitive (concentrated) markets, and disappears or decreases in more competitive markets. The result suggests that the substitution effect between internal corporate governance and product market competition in the effect on firm value, as suggested in previous literatures, is also valid in payout policy. Our results will provide practical and institutional implications regarding the most efficient method of finding optimal internal corporate governance structure given market structures.

Abstract

This paper investigates how the interaction between internal corporate governance and product market competition affects corporate payout. Empirically, existing papers demonstrate that corporate governance has a significantly negative effect on corporate payout; however, we observe that this negative relation is observed only in less competitive (concentrated) markets, and disappears or decreases in more competitive markets. The result suggests that the substitution effect between internal corporate governance and product market competition in the effect on firm value, as suggested in previous literatures, is also valid in payout policy. Our results will provide practical and institutional implications regarding the most efficient method of finding optimal internal corporate governance structure given market structures.

참고문헌 (44)

  1. Alchian, A., "Uncertainty, Evolution and Economic Theory", Journal of Political Economy, 58, pp.211~221 (1950)
  2. Allen, F., "North-Holland Handbooks of Economics", pp.337~429 (2002), North-Holland
  3. Ammann, M., "Product Market Competition, Corporate Governance, and Firm Value: Evidence from the EU-Area", European Financial Management, 19, pp.452~469 (2013)
  4. Bebchuk, L., "What Matters in Corporate Governance?", Review of Financial Studies, 22, pp.783~827 (2009)
  5. Black, B., "Predicting Firm’s Corporate Governance Choices: Evidence from Korea", Journal of Corporate Finance, 12, pp.660~691 (2006)
  6. Bolton, P., "A Theory of Predation Based on Agency Problems in Financial Contracting", American Economic Review, 80, pp.93~106 (1990)
  7. 변희섭, "How Does Product Market Competition Interact with Internal Corporate Governance?: Evidence from the Korean Economy", Asia-Pacific Journal of Financial Studies, 41(4), pp.377~423 (2012), 한국증권학회[DOI]
  8. Chae, J., "How corporate governance affects payout policy under agency problems and external financing constraints", Journal of Banking and Finance, 33, pp.2093~2101 (2009)
  9. Cremers, M., "Governance Mechanisms and Equity Prices", Journal of Finance, 60, pp.2859~2894 (2005)
  10. DeAngelo, H., "Dividend policy and the earned", contributed capital mix: a test of the life-cycle theory, 2006, pp.81, 227~254
  11. Dittmar, A., "Why Do Firms Repurchase Stock?", Journal of Business, 73, pp.331~355 (2000)
  12. Easterbrook, F., "Two Agency Cost Explanations of Dividends", American Economic Review, 74, pp.650~659 (1984)
  13. Fama, E. F., "Testing Tradeoff and Pecking Order Predictions about Dividends and Debt", Review of Financial Studies, 15, pp.1~37 (2002)
  14. Fama, E. F., "Disappearing Dividends: Changing Firm Characteristics or Lower Propensity to Pay?", Journal of Financial Economics, 60, pp.3~43 (2001)
  15. Fama, E. F., "Industry Costs of Capital", Journal of Financial Economics, 43, pp.153~193 (1997)
  16. Fama. E. F., "Risk, Return, and Equilibrium : Empirical Tests", Journal of Political Economy, 81, pp.607~636 (1973)
  17. Explaining corporate governance: Boards, bylaws, and charter provisions, "Gillan, S.", Weinberg Center for Corporate Governance, ~, pp.Working Paper No. 2003-03 (2003)
  18. Giroud, X., "Corporate Governance, Product Market Competition, and Equity Prices", Journal of Finance, 66, pp.563~600 (2011)
  19. Gompers, P. A., "Corporate Governance and Equity Prices", Quarterly Journal of Economics, 118, pp.107~155 (2003)
  20. Corporate Payout Policy and Product Market Competition, "Grullon, G.", Rice University, ~ (2012)
  21. Grullon, G., "Dividends, Share Repurchases, and the Substitution Hypothesis", Journal of Finance, 57, pp.1649~1684 (2002)
  22. The Impact of Product Market Competition on Private Benefits of Control, "Guadalupe, M.", Stanford University, ~ (2005)
  23. Hart, O., "The Market Mechanism as an Incentive Scheme", Bell Journal of Economics, 14, pp.366~382 (1983)
  24. Holmstrom, B., "Moral Hazard in Teams", Bell Journal of Economics, 13, pp.324~340 (1982)
  25. Jensen, M. C., "The Market for Corporate Control, the Scientific Evidence", Journal of Financial Economics, 11, pp.5~50 (1983)
  26. Jensen, M. C., "Agency Costs of Free Cash Flows, Corporate Finance, and Takeovers", American Economic Review, 76, pp.323~329 (1986)
  27. Jiraporn, P., "Dividend Payouts and Corporate Governance Quality : An Empirical Investigation", Financial Review, 46, pp.251~279 (2011)
  28. Dividend Policy, Shareholder Rights, and Corporate Governance, "Jiraporn, P.", Pennsylvania State University, ~ (2006)
  29. Jo, H., "Why Are Firms with Entrenched Managers More Likely to Pay Dividends?", Review of Accounting and Finance, 8, pp.87~116 (2009)
  30. Karuna, C., "Industry Product Market Competition and managerial incentives", Journal of Accounting and Economics, 43, pp.275~297 (2007)
  31. Industry Product Market Competition and Corporate Governance, "Karuna, C.", University of Houston, ~ (2010)
  32. Kim, E., "CEO Ownership and External Governance, and Risk Taking", Journal of Financial Economics, 102, pp.272~292 (2011)
  33. La Porta, R., "Agency Problem and Dividend Policies around the World", Journal of Finance, 55, pp.1~33 (2000)
  34. Lemmon, L., "Ownership Structure, Corporate Governance, and Firm Value : Evidence from East Asian Financial Crisis", Journal of Finance, 58, pp.1445~1468 (2003)
  35. Miller, M., "Dividend Policy under Asymmetric Information", Journal of Finance, 40, pp.1031~1051 (1985)
  36. Mitton, T., "A Cross-Firm Analysis of the Impact of Corporate Governance on the East Asian Financial Crisis", Journal of Financial Economics, 64, pp.595~612 (2002)
  37. Dividend Policy, Dividend Initiations, and Governance, "Officer, M.", University of Southern California, ~ (2007)
  38. Petersen, M. A., "Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches", Review of Financial Studies, 22, pp.435~480 (2009)
  39. Scherer, F. M., "Industrial Market Structure and Economic Performance" (1980), Rand McNally
  40. Schmidt, K., "Managerial Incentives and Product Market Competition", Review of Economic Studies, 64, pp.191~213 (1997)
  41. Shleifer, A., "A Survey of Corporate Governance", Journal of Finance, 52, pp.737~783 (1997)
  42. Stigler, G., "The Economics of Scale", Journal of Law and Economics, 1, pp.54~71 (1958)
  43. Tirole, J., "The Theory of Industrial Organization" (1988), MIT Press
  44. Payout Policy and Shareholder Rights: The Lifecycle Theory versus Cash Flow Uncertainty, "Zhang, H.", Deakin University, ~ (2011)

관련 논문AI추천

이 간행물의 다른 논문 (3건)