Corporate Payout Policy in Founder and Family Firms

  title={Corporate Payout Policy in Founder and Family Firms},
  author={James Lau and Jorn Hendrich Block},
  journal={Entrepreneurship \& Management eJournal},
This paper investigates the tax and agency explanations of corporate payout policy by investigating the likelihood, the level and the method of payout in founder and family firms. Controlling founders and families are both subject to the tax disadvantage of dividends arising from their substantial shareholdings, but family firms are arguably subject to more severe agency conflicts than founder firms due to their susceptibility to wasteful expenditure and the adverse effects of intra-family… Expand
2 Citations
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