Ownership structure effect on relationship between information asymmetry and payment policy

Authors

DOI:

https://doi.org/10.33448/rsd-v10i5.15293

Keywords:

Payment policy; Information asymmetry; Shareholding structure.

Abstract

Defining a shareholder payment policy depends on a corporate decision-making framework, or what may lead to conflicts of interest. In this context, the present study analyzes the moderating effect of ownership structure on the relationship between information asymmetry and payment policy of publicly traded Brazilian companies. The results do not reject the hypothesis (H1) that information asymmetry positively affects compensation when triggering. Regarding the moderating effect of ownership structure (H2), the results were not consensual, as ownership structure moderated the relationship between asymmetry and payment policy in only one of the two information asymmetry proxies. Thus, this research contributes to literature and stakeholders in the Brazilian stock market, presenting different perspectives, or moderating effect of ownership structure on the relationship between information asymmetry and shareholder valuation.

Author Biographies

Erica Juvercina Sobrinho, Universidade Federal de Uberlândia

Faculdade de Gestão e Negócios

Vitor Borges Tavares, Universidade Federal de Uberlândia

Faculdade de Gestão e Negócios

Pablo Rogers Silva, Universidade Federal de Uberlândia

Faculdade de Gestão e Negócios

References

Al-Najjar, B. (2011). The inter-relationship between capital structure and dividend policy: empirical evidence from Jordanian data. International Review of Applied Economics, 25(2), 209–224. https://doi.org/10.1080/02692171.2010.483464

Albanez, T., & Valle, M. R. do. (2009). Impactos da assimetria de informação na estrutura de capital de empresas brasileiras abertas 1 Impacts of information asymmetry on the capital structure. Revista de Contabilidade e Finanças, v. 20(33), 6–27.

Allen, F., & Michaely, R. (2003). Handbook of the Economics of Finance. In G. M. Constantinides, M. Harris, & R. Stulz (Eds.), Elsevier (pp. 337–429). Elsevier B.V. Retrieved from http://portal.lscmalta.edu.mt/resources/mod/folder/view.php?id=3700

Ben-Nasr, H. (2015). Government Ownership and Dividend Policy: Evidence from Newly Privatised Firms. Journal of Business Finance and Accounting, 42(5–6), 665–704. https://doi.org/10.1111/jbfa.12115

Bernardo, H. P., & Ikeda, R. H. (2013). O Enigma Dos Dividendos E O Risco Sistemático. Revista Universo Contábil, 9(1), 104–120. https://doi.org/10.4270/ruc.2013106

Boulton, T. J., Braga-Alves, M. V., & Shastri, K. (2012). Payout policy in Brazil: Dividends versus interest on equity. Journal of Corporate Finance, 18(4), 968–979. https://doi.org/10.1016/j.jcorpfin.2011.09.004

Duqi, A., Jaafar, A., & Warsame, M. H. (2019). Payout policy and ownership structure: The case of Islamic and conventional banks. The British Accounting Review. https://doi.org/10.1016/j.bar.2019.03.001

Ferreira Jr, W. O., Nakamura, W. T., Martin, D. M. L., & Bastos, D. D. (2010). Evidências Empíricas Dos Fatores Determinantes Das Políticas De Dividendos Das Firmas Listadas Na Bovespa. FACEF Pesquisa - Desenvolvimento e Gestão, 13(2), 190–203.

Forti, C. A. B., Peixoto, F. M., & Alves, D. L. e. (2015). Determinant Factors of Dividend Payments in Brazil. Revista Contabilidade & Finanças, 26(68), 167–180. https://doi.org/10.1590/1808-057x201512260

Forti, C., & Schiozer, R. F. (2015). Bank dividends and signaling to information-sensitive depositors. Journal of Banking and Finance, 56(February), 1–11. https://doi.org/10.1016/j.jbankfin.2015.02.011

Futema, M. S., Basso, L. F. C., & Kayo, E. K. (2009). Estrutura de capital, dividendos e juros sobre o capital próprio: testes no Brasil. Revista Contabilidade & Finanças, 20(49), 44–62. https://doi.org/10.1590/S1519-70772009000100004

Gugler, K. (2003). Corporate governance, dividend payout policy, and the interrelation between dividends, R&D, and capital investment. Journal of Banking & Finance, 27(7), 1297–1321. https://doi.org/10.1016/S0378-4266(02)00258-3

Heineberg, R., & Procianoy, J. L. (2003). Aspectos determinantes do pagamento de proventos em dinheiro das empresas com ações negociadas na Bovespa. In Encontro Nacional da Associação Nacional dos Programas de Pós-graduação em Administração, 27, 2003, Atibaia. Atibaia: ANPAD. https://doi.org/10.1017/CBO9781107415324.004

Holanda, A. P., & Coelho, A. C. D. (2012). Dividendos e efeito clientela: evidências no mercado brasileiro. Revista de Administração de Empresas, 52(4), 448–463. https://doi.org/10.1590/S0034-75902012000400007

Huddart, S. (1993). The Effect of a Large Shareholder on Corporate Value. Management Science, 39(11), 1407–1421. https://doi.org/10.1287/mnsc.39.11.1407

Iquiapaza, R., Lamounier, W., & Amaral, H. (2006). Asymmetric Information and Dividends Payment at Bovespa. Munich Personal RePEc Archive, (1673). Retrieved from https://mpra.ub.uni-muenchen.de/1673/

Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics.

Kumar, A., & Vergara-Alert, C. (2018). The Effect of Financial Flexibility on Payout Policy. Journal of Financial and Quantitative Analysis, 1–27. https://doi.org/10.1017/S002210901800114X

La Porta, R., Lopez-De-Silanes, F., Shleifer, A., & Vishny, R. W. (2000). Agency Problems and Dividend Policies Around the World. The Journal of Finance, 55(1), 1–33. https://doi.org/10.2307/222549

Lee, C.-W. J., & Xiao, X. (2011). Tunneling Dividends. SSRN Electronic Journal, (03). https://doi.org/10.2139/ssrn.693361

Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: an international comparison. Journal of Financial Economics, 69, 505–527. https://doi.org/10.1016/S0304-405X(03)00121-1

Lin, T., Chen, Y., & Tsai, H. (2017). The relationship among information asymmetry, dividend policy and ownership structure. Finance Research Letters, 20, 1–12. https://doi.org/10.1016/j.frl.2016.06.008

Marques, B. S., Perpétuo, A. A. G., & Rocha, D. M. (2020). Análise bibliométrica sobre os estudos de dividendos no Brasil. Research, Society and Development, 9(8). http://dx.doi.org/10.33448/rsd-v9i8.5658

Martins, A. I., & Famá, R. (2012). O que revelam os estudos realizados no Brasil sobre política de dividendos? Revista de Administração de Empresas, 52(1), 24–39. https://doi.org/10.1590/S0034-75902012000100003

Martins, T. C., & Novaes, W. (2012). Mandatory dividend rules: Do they make it harder for firms to invest? Journal of Corporate Finance, 18(4), 953–967. https://doi.org/10.1016/j.jcorpfin.2012.05.002

Maug, E. (1998). Large shareholders as monitors: Is there a trade-off between liquidity and control? Journal of Finance, 53(1), 65–98. https://doi.org/10.1111/0022-1082.35053

Moreiras, L. M. F., Tambosi Filho, E., & Garcia, F. G. (2012). Dividendos e informação assimétrica: análise do novo mercado. Revista de Administração, 47'(4), 671–682. https://doi.org/10.5700/rausp1066

Mota, D. C., & Junior, W. E. (2007). Dividendos, juros sobre capital próprio e recompra de ações: um estudo empírico sobre a política de distribuição no Brasil. In XXXI Encontro da ANPAD (pp. 1–16). Rio de Janeiro: EnANPAD.

Ofer, A. R., & Siegel, D. R. (1987). Corporate Financial Policy, Information, and Market Expectations: An Empirical Investigation of Dividends. The Journal of Finance, 42(4), 889–911.

La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate Ownership Around the World. The Journal of Finance, 54(2), 471–517.

Pereira, A. S., Shitsuka, D. M., Parreira, F. J., & Shitsuka, R. (2018). Metodologia da pesquisa científica. Editora UAB/NTE/UFSM. Santa Maria-RS

Procianoy, J. L., & Verdi, R. S. (2009). Dividend Clientele, new insights, and new questions: the brazilian case. Revista de Administração de Empresas - Eletrônica, 8(1), Art. 1. https://doi.org/10.1017/CBO9781107415324.004

Rajverma, A. K., Misra, A. K., Mohapatra, S., & Chandra, A. (2019). Impact of ownership structure and dividend on firm performance and firm risk. Managerial Finance, 45(8), 1041–1061. https://doi.org/10.1108/MF-09-2018-0443

Ramli, N. M. (2010). Ownership structure and dividend policy: Evidence from Italian firms. International Review of Business Research Papers, 6(1), 170–180. https://doi.org/10.1080/13518470500249365

Rosa, A. A., Araújo, F. B. B. & Rogers, P. (2021). Política de dividendos e volatilidade do preço das empresas brasileiras de capital aberto. Research, Society and Development, 10(4). http://dx.doi.org/10.33448/rsd-v10i4.14210

Rozeff, M. S. (1982). Growth, beta and agency costs as determinants of dividend payout ratios. The Journal of Financial Research, 5(3), 249–259.

Santos, A. Dos. (2007). Quem está pagando juros sobre capital próprio no Brasil? Revista Contabilidade & Finanças, 18(6), 33–44. https://doi.org/10.1590/S1519-70772007000300004

Silva, A. L. C. da. (2004). Governanca corporativa, valor, alavancagem e política de dividendos nas empresas brasileiras. Revista de Administração, 39(4), 348–361.

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355–374.

Tomaz, N. C. B. (2017). Relação entre a distribuição de dividendos e o preço da ação das empresas listadas na B3. Monografia. Universidade Federal da Paraíba, João Pessoa.

Topak, M. S., & Dereli, H. (2018). The Effect of Dividend Policy on Stock Price: Evidence from An Emerging Country. Journal of Business Research - Turk, 10(4), 1186–1197. https://doi.org/10.20491/isarder.2018.569

Vancin, D. F., & Procianoy, J. L. (2016). Os Fatores Determinantes do Pagamento de Dividendos : o Efeito do Obrigatório Mínimo Legal e Contratual nas Empresas Brasileiras. Brazilian Review of Finance, 14(1), 89–123.

Vogelsang, T. J. (2012). Heteroskedasticity, autocorrelation, and spatial correlation robust inference in linear panel models with fixed-effects. Journal of Econometrics, 166(2), 303–319. https://doi.org/10.1016/j.jeconom.2011.10.001

Wei, J. G., Zhang, W., & Xiao, J. Z. (2004). Dividend Payment and Ownership Structure in China. Advances in Financial Economics, 9, 187–219. https://doi.org/10.1016/S1569-3732(04)09008-5

Published

15/05/2021

How to Cite

SOBRINHO, E. J.; TAVARES, V. B.; SILVA, P. R. Ownership structure effect on relationship between information asymmetry and payment policy. Research, Society and Development, [S. l.], v. 10, n. 5, p. e52010515293, 2021. DOI: 10.33448/rsd-v10i5.15293. Disponível em: https://www.rsdjournal.org/index.php/rsd/article/view/15293. Acesso em: 2 feb. 2023.

Issue

Section

Human and Social Sciences