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 rightly-held, the predominant mannikin of ownership in easternmost Asia is control by a family, which often supplies a clog away manager. These features of crony capitalism are actually to a greater extent pronounce in western atomic number 63. In both regions, the big fashion problem is expropriation of international shareholders by controlling shareholders. Dividends offer demo on this. Group-affiliated corporations in Europe pay high(prenominal) dividends than in Asia, dampening Footnotes * Faccio: ancillary professor, 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.); childly: Professor of Finance and administrator 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 coming together in Athens. We thank Stijn Claessens, Simeon Djankov, and Joseph Fan for providing their data for east Asia. Larry Lang acknowledges research support from a Hong Kong UGC Earmarked Grant. 2 insider expropriation. Dividend rates are higher in Europe, nevertheless visit in Asia, when there are two-fold swelled shareholders, suggesting that they dampen expropriation in Europe, but exacerbate it in Asia. (JEL G34, G35) Failures in eastern Asiatic corporate governing body have lately attracted wide attention through being damned for the East Asian financial crisis. Based only on...If you motive to get a full essay, order it on our website: Ordercustompaper.com

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