Controlling shareholders’ opportunistic use of share repurchases

  title={Controlling shareholders’ opportunistic use of share repurchases},
  author={H. Kim and H. Jo and S. S. Yoon},
  journal={Review of Quantitative Finance and Accounting},
This study examines how share repurchase and dividend policies are influenced by controlling shareholders in an emerging market. We maintain that the controlling shareholders can utilize share repurchase opportunistically, particularly when they exercise voting rights in excess of cash-flow rights. The evidence of Korean firms suggests that the wedge between the voting rights and cash-flow rights positively affects share repurchases but negatively affects cash dividends. We also find that share… Expand
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Advances in the corporate finance literature: a survey of recent studies on Korea
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