Journal des affaires et de l'économie

How the Market Dividend Payouts External Governance and Mechanisms Control the Family Firms

Abstract

Chia-Chen Teng

This study examines how three external governance mechanisms interact with the internal family-governance system to influence dividend payout decisions. The findings indicate that family businesses deliver fewer dividends when the market prefers dividends. Contrarily, family firms release more dividends under greater monitoring from institutional investors and debt holders. The study expands various theories and generates policy implications.