Hosted by TJAR Workshop, Jointly Supported by RIEB Seminar / SESAMI Program
|Date & Time||Saturday, May 13, 2023, 15:00 - 16:30|
|Place||Meeting Room at RIEB (Annex, 2nd Floor)|
|Intended Audience||Faculty, Graduate Students, and People with Equivalent Knowledge|
|Registration||Registration is required. The seminar details will be sent to the registered emails.
Registration Form (Due: May 10)
15:00 - 16:30
- Corporate Governance, Idiosyncratic Risk, and Dividend Policy
- Ghon RHEE (Shidler College of Business, University of Hawai'i)
- We reconcile two competing views regarding the relation between corporate governance and payout policy by uncovering the moderating roles of under- and over-investment risk. Our empirical evidence indicates that corporate governance and payout propensity exhibit a negative association (substitute) for firms with a high level of under-investment risk. This association turns positive (complement) for firms with a higher level of over-investment risk. These findings are robust to several checks, including alternative governance measures and exogenous shocks to the quality of corporate governance. Lastly, we observe a similar phenomenon on share repurchase, total payout, and the level of payout.