This paper provides an analysis of the market reaction to dividend change announcements for publicly-traded, family-controlled firms. Family firms have a significantly lower proportion of independent directors than no...This paper provides an analysis of the market reaction to dividend change announcements for publicly-traded, family-controlled firms. Family firms have a significantly lower proportion of independent directors than non-family firms, which is consistent with the idea that family members dominate the board of directors and that family shareholders are common in publicly-traded firms. The author analyzed 390 dividend change announcements in Portugal over the period from 1991 to 2010 using a panel data approach. The results show no evidence of a significant market reaction to dividend change announcements, providing no evidence in support of the dividend-signaling hypothesis in the context of family firms. This conclusion agrees with previous studies in which there was no distinction between family and non-family firms. Empirical results show that family firms engage in lower payouts than their non-family counterparts, giving some supports to the expropriation hypothesis. This finding may indicate that families expropriate the wealth of shareholders through lower dividends. This result is also consistent with the clientele theory of dividends.展开更多
Taiwan and China's Mainland signed the Economic Cooperation Framework Agreement （ECFA） on 29th June, 2010. The ECFA is a landmark bilateral trade agreement that can make Taiwan a new gateway to China's Mainl...Taiwan and China's Mainland signed the Economic Cooperation Framework Agreement （ECFA） on 29th June, 2010. The ECFA is a landmark bilateral trade agreement that can make Taiwan a new gateway to China's Mainland. However, the Taiwan Residents petrochemical industry would be very disappointed with the early harvest list as it excluded some critical export items. The purpose of this paper is to amend the understanding of the possible impact on petrochemical market after ECFA is enacted. The authors examine the cumulative daily response of stock prices to five announcements about the ECFA and evaluate the existence of the abnormal return. The authors use daily data from January 2010 to February 2011 to employ an event study approach. The empirical results suggest that the three ECFA announcement dates, as well as the signing date, show significantly negative abnormal return due to the prior positive cumulative response of Taiwan chemicals listed stock prices. This paper can provide the petrochemical industry manufacturer, owners, and investors with further insights into how chemicals stock returns react to a big event like ECFA.展开更多
文摘This paper provides an analysis of the market reaction to dividend change announcements for publicly-traded, family-controlled firms. Family firms have a significantly lower proportion of independent directors than non-family firms, which is consistent with the idea that family members dominate the board of directors and that family shareholders are common in publicly-traded firms. The author analyzed 390 dividend change announcements in Portugal over the period from 1991 to 2010 using a panel data approach. The results show no evidence of a significant market reaction to dividend change announcements, providing no evidence in support of the dividend-signaling hypothesis in the context of family firms. This conclusion agrees with previous studies in which there was no distinction between family and non-family firms. Empirical results show that family firms engage in lower payouts than their non-family counterparts, giving some supports to the expropriation hypothesis. This finding may indicate that families expropriate the wealth of shareholders through lower dividends. This result is also consistent with the clientele theory of dividends.
文摘Taiwan and China's Mainland signed the Economic Cooperation Framework Agreement （ECFA） on 29th June, 2010. The ECFA is a landmark bilateral trade agreement that can make Taiwan a new gateway to China's Mainland. However, the Taiwan Residents petrochemical industry would be very disappointed with the early harvest list as it excluded some critical export items. The purpose of this paper is to amend the understanding of the possible impact on petrochemical market after ECFA is enacted. The authors examine the cumulative daily response of stock prices to five announcements about the ECFA and evaluate the existence of the abnormal return. The authors use daily data from January 2010 to February 2011 to employ an event study approach. The empirical results suggest that the three ECFA announcement dates, as well as the signing date, show significantly negative abnormal return due to the prior positive cumulative response of Taiwan chemicals listed stock prices. This paper can provide the petrochemical industry manufacturer, owners, and investors with further insights into how chemicals stock returns react to a big event like ECFA.
