Dividends and Problem of Separation of Ownership and Control: Theory and Evidence from French Firms

  •  Hatem Ben Said    


This paper examines the determinants of dividends payout by focusing on the role of institutional and managerial ownership factors. It also highlights the impact of controlling shareholders on dividends payout ratios. It empirical studies the French context using a sample of 246 firms over a period of 11 years, extending from 1997 to 2007. The results indicate an inverse relationship between dividends payout and institutional ownership and support the negative effect of managerial ownership. The paper concludes, however, with the invalidity of the wealth expropriation hypothesis of minority shareholders by the controlling shareholders in both static and dynamic frameworks.

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