Whence the Privatized Firm Dividend Premium?

Abstract

We find that the major determinants of the dividend payout premium of firms after privatization are improved firm operating performance and a prevalence of agency costs which are mitigated by higher pay-outs. We examine up to 74,562 firm-years (up to 336 privatized and 5,625 non-privatized firms) across 26 countries. The privatized firm payout premium is… (More)

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