Interrelationships among Capital Structure, Dividends, and Ownership: Evidence from South Korea

Kim, Yong H.; Rhim, Long C.; Friesner, Daniel L.
September 2007
Multinational Business Review (St. Louis University);Fall2007, Vol. 15 Issue 3, p25
Academic Journal
This paper examines the interrelationships among debt policy, dividend policy, and ownership structure using a simultaneous equation framework. Our approach allows us to test both the convergence of interests theory and entrenchment theory. Using a sample of publicly traded South Korean manufacturing firms, we find that debt policy and ownership structure have a positive impact on dividend policy. We also find that both debt and dividend policy are positively related to ownership structure. Our findings support both the theory of convergence of interests between management and ownership and entrenchment theory, and also explain why many studies have found conflicting results.


Related Articles

  • Property rights becomes hot battle. Shillinger, Kurt // Christian Science Monitor;3/2/95, Vol. 87 Issue 66, p4 

    Reports on the protection of property rights in the US. Example of John Bronczyk and Josephine Bronczyk; Debate in the House on March 2, 1995.

  • State private property rights acts: The potential for implicating federal environmental programs. Cole, Ann L. Renhard // Texas Law Review;Feb98, Vol. 76 Issue 3, p685 

    Compares the language of Private Property Rights Acts (PPRAs) in Montana, Utah and Texas. Brief history of state PPRAs; Provisions under the Montana Private Property Assessment Act of 1995; Utah's 1993 Private Property Protection Act; Texas Private Real Property Rights Preservation Act;...

  • Give and takings: When do land-use rules trample property rights? Levinson, Nancy // Architectural Record;Oct1994, Vol. 182 Issue 10, p50 

    Reports on the controversy regarding real property rights in the United States. Battle between government actions on private properties; Case examples; Laws about private properties and the need to redefine them; Preservation, environmental questions and public responsibility clashing with...

  • Taking bills represent threat. Barlas, Stephen // American City & County;Jan1998, Vol. 113 Issue 1, p10 

    Focuses on the impact of the S.1204 senate bill, the private property rights bill which was passed by the House, on cities and counties in the United States. Comparison of the bill to 248-178, which was passed by the House in October, 1997; Who opposed the bill; Comments from Mayor Lucy Allen...

  • `Takings' bills: Sane second thoughts. Peirce, Neal R. // Indianapolis Business Journal;12/18/95, Vol. 16 Issue 40, p12B 

    Looks at legislation governing property rights. Information on legislation; Comments from officials; Description of `takings legislation'; Views from critics of legislation.

  • The case of the disappearing property (rights). Hyde, John // Institute of Public Affairs Review;May98, Vol. 50 Issue 3, p9 

    Focuses on property rights in Australia. Role of the Western Australian government in property rights; Objections to what the State Government is doing; Recommendations to remedy the problem.

  • Tilling middle ground of property-rights debate. Tyson, James L. // Christian Science Monitor;6/27/95, Vol. 87 Issue 148, p4 

    Presents a debate over the rights of the property holder and the regulations of the government. Consideration of new laws as result of a conference held at the University of Wisconsin in Madison; Details of the conference.

  • Florida: Constitutional amendment looms.  // Planning;Aug94, Vol. 60 Issue 8, p5 

    Focuses on Marcia Elder's report that no property rights bill made it out of the legislature in 1994. Groups that worked to keep the a bill from a vote; Plans of property rights advocates for a campaign to amend the state constitution; Proposed amendments; Possible effect of the bill on...

  • Consider both sides. Casella, Sam // Planning;Jan95, Vol. 61 Issue 1, p32 

    Reports that property rights bills in the United States Congress and state legislatures have caused concern in many quarters. Possible crippling of existing environmental laws and regulation; Protection of property rights under the Fifth Amendment; Bills as concern for planners; Consequences of...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics