Overview
Topic status: We're looking for students to study this topic.
The outcome model of dividends states that minority shareholders in high protection countries can protect their interests by pressuring managers into distributing cash. This is because minority shareholders have better access to various legal mechanisms, e.g. the right to vote on important corporate matters and the right to sue the firm for damages in those countries.
This project argues that the dividend drop-off ratio (as opposed to dividend payout, as is typically used in the literature) provides a stronger test of the outcome model because the drop-off ratio tells us how much investors value the dividends relative to the capital gains. It predicts the drop-off ratio to decrease with the degree of investor protection.
- Study level
- Vacation research experience scholarship
- Supervisors
- QUT
- Organisational unit
QUT Business School
- Research area
- Keywords
- dividend drop-off, investor protection
Professor Janice How
