Abstract:
Using a sample of Chinese listed firms for the period of 2004-2014 and hand-collected data on the globalizing board, this study empirically investigates the effect of the globalizing board on cash dividend. Our findings show that the globalizing board has a significantly positive impact on cash dividend. Moreover, analyst coverage attenuates the positive association between the globalizing board and cash dividend. Furthermore, after considering the semi-mandatory dividend policy, our findings show that the positive association between the globalizing board and cash dividend is significantly stronger for pre-2008 period than for post-2008 period. Above findings are robust to alternative measures of the globalizing board and cash dividend and further our conclusions are still valid after controlling for the potential endogeneity between the globalizing board and cash dividend. Results of subsample tests show that the positive effect of the globalizing board on cash dividend only exists for the subsamples of higher Marketization and non-state-owned enterprises.
Adjaoud, F., and W. Ben-Amar. 2010. “Corporate Governance and Dividend Policy: Shareholders’ Protection or Expropriation? ”, Journal of Business Finance & Accounting, 37(5-6): 648~667.
Adjaoud, F., and W. Ben-Amar. 2010. “Corporate Governance and Dividend Policy: Shareholders’ Protection or Expropriation? ”, Journal of Business Finance & Accounting, 37(5-6): 648~667.
[7]
Alexander, L., and S. U. Esser. 1999. “Globalizing the Board of Director”, New York: The Conference Board.
Alexander, L., and S. U. Esser. 1999. “Globalizing the Board of Director”, New York: The Conference Board.
[8]
Barth, M., R. Kasnik, and M. McNichols. 2001. “Analyst Coverage and Intangible Assets”, Journal of Accounting Research, 39: 1~34.
Barth, M., R. Kasnik, and M. McNichols. 2001. “Analyst Coverage and Intangible Assets”, Journal of Accounting Research, 39: 1~34.
[9]
Barroso, C., M. M. Villegas, and L. Pérez-Calero. 2011. “Board Influence on a Firm’s Internationalization”, Corporate Governance: An International Review, 19(4): 351~367.
Barroso, C., M. M. Villegas, and L. Pérez-Calero. 2011. “Board Influence on a Firm’s Internationalization”, Corporate Governance: An International Review, 19(4): 351~367.
[10]
Belden, S., T. Fister, and B. Knapp. 2005. “Dividends and Directors: Do Outsiders Reduce Agency Costs?”, Business and Society Review, 110(2): 171~180.
Belden, S., T. Fister, and B. Knapp. 2005. “Dividends and Directors: Do Outsiders Reduce Agency Costs?”, Business and Society Review, 110(2): 171~180.
[11]
Chang, B., and S. Dutta. 2012. “Dividends and Corporate Governance: Canadian Evidence”, The IUP Journal of Applied Finance, 18(4): 5~30.
Chang, B., and S. Dutta. 2012. “Dividends and Corporate Governance: Canadian Evidence”, The IUP Journal of Applied Finance, 18(4): 5~30.
[12]
Chay, J.B. ,and J. Suh. 2009. “Payout Policy and Cash-Flow Uncertainty”, Journal of Financial Economics, 93(1): 88~107.
Chay, J.B. ,and J. Suh. 2009. “Payout Policy and Cash-Flow Uncertainty”, Journal of Financial Economics, 93(1): 88~107.
[13]
Choi, H.M., W. Sul,and S. K. Min. 2012. “Foreign Board Membership and Firm Value in Korea”, Management Decision, 50(2): 207~233.
Choi, H.M., W. Sul,and S. K. Min. 2012. “Foreign Board Membership and Firm Value in Korea”, Management Decision, 50(2): 207~233.
[14]
Du, X. 2014. “Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism”, Journal of Business Ethics, 125(2):299~327.
Du, X. 2014. “Does Religion Mitigate Tunneling? Evidence from Chinese Buddhism”, Journal of Business Ethics, 125(2):299~327.
[15]
Giannetti, M., G. Liao,and X. Yu. 2015. “The Brain Gain of Corporate Boards: Evidence from China”, The Journal of Finance, 70(8): 1629~1682.
Giannetti, M., G. Liao,and X. Yu. 2015. “The Brain Gain of Corporate Boards: Evidence from China”, The Journal of Finance, 70(8): 1629~1682.
[16]
Herrmann, P., and D. K. Datta. 2005. “Relationships between Top Management Team Characteristics and International Diversification: an Empirical Investigation”, British Journal of Management, 16(3):69~78.
Herrmann, P., and D. K. Datta. 2005. “Relationships between Top Management Team Characteristics and International Diversification: an Empirical Investigation”, British Journal of Management, 16(3):69~78.
[17]
Hu, A., and P. Kumar. 2004. “Managerial Entrenchment and Payout Policy”, Journal of Financial and Quantitative Analysis, 39(4): 759~790.
Hu, A., and P. Kumar. 2004. “Managerial Entrenchment and Payout Policy”, Journal of Financial and Quantitative Analysis, 39(4): 759~790.
[18]
Masulis, R. W., C. Wang, and F. Xie. 2012. “Globalizing the Boardroom——The Effects of Foreign Directors on Corporate Governance and Firm Performance”, Journal of Accounting and Economics, 53(3): 527~554.
Masulis, R. W., C. Wang, and F. Xie. 2012. “Globalizing the Boardroom——The Effects of Foreign Directors on Corporate Governance and Firm Performance”, Journal of Accounting and Economics, 53(3): 527~554.
[19]
Miller, M. H., and F. Modigliani. 1961. “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34(4): 411~433.
Miller, M. H., and F. Modigliani. 1961. “Dividend Policy, Growth, and the Valuation of Shares”, The Journal of Business, 34(4): 411~433.
[20]
Officer, M.S. 2006. “Dividend Policy, Dividend Initiations, and Governance”, WorkingPaper, University of Southern California.
Officer, M.S. 2006. “Dividend Policy, Dividend Initiations, and Governance”, WorkingPaper, University of Southern California.
[21]
Oxelheim, L., and T. Randoy. 2003. “The Impact of Foreign Board Membership on Firm Value”, Journal of Banking & Finance, 27(5):2369~2392.
Oxelheim, L., and T. Randoy. 2003. “The Impact of Foreign Board Membership on Firm Value”, Journal of Banking & Finance, 27(5):2369~2392.
[22]
Pfeffer, J. 1972. “Size and Composition of Corporate Boards of Directors: The Organization and its Environment”, Administrative Science Quarterly, 17(2) : 218~228.
Pfeffer, J. 1972. “Size and Composition of Corporate Boards of Directors: The Organization and its Environment”, Administrative Science Quarterly, 17(2) : 218~228.
[23]
Ruigrok, W., S. Peck, and S. Tacheva. 2007. “Nationality and Gender Diversity on Swiss Corporate Boards”,Corporate Governance: An International Review, 15(4) : 546~557.
Ruigrok, W., S. Peck, and S. Tacheva. 2007. “Nationality and Gender Diversity on Swiss Corporate Boards”,Corporate Governance: An International Review, 15(4) : 546~557.
[24]
Sun, J. 2009. “Governance Role of Analyst Coverage and Investor Protection”, Financial Analysts Journal, 65(6): 1~13.
Sun, J. 2009. “Governance Role of Analyst Coverage and Investor Protection”, Financial Analysts Journal, 65(6): 1~13.
[25]
Sun, J., and Guoping Liu. 2011. “Industry Specialist Auditors, Outsider Directors, and Financial Analysts”, Journal of Account and Public Policy, 30(3): 367~382.
Sun, J., and Guoping Liu. 2011. “Industry Specialist Auditors, Outsider Directors, and Financial Analysts”, Journal of Account and Public Policy, 30(3): 367~382.
[26]
Yu, F. 2008. “Analyst Coverage and Earnings Management”,Journal of Financial Economics, 88(4): 245~271.
Yu, F. 2008. “Analyst Coverage and Earnings Management”,Journal of Financial Economics, 88(4): 245~271.
