TY - JOUR
T1 - Control-ownership disparity and stock market Predictability
T2 - Evidence from Korean chaebols
AU - Joe, Denis Yongmin
AU - Oh, Frederick Dongchuhl
AU - Park, Cheolbeom
N1 - Publisher Copyright:
© 2018 Elsevier Inc.
Copyright:
Copyright 2018 Elsevier B.V., All rights reserved.
PY - 2018/12
Y1 - 2018/12
N2 - We use Korean firm-level data to examine whether the predictive ability of log dividend yields depends on the disparity between control and ownership rights. We find that dividend growth predictability via the log dividend yield grows as the disparity between control and ownership rights increases. However, we find that log dividend yields have no significant predictive power for stock returns. Our results are generally consistent with the US firm-level results in Vuolteenaho (2002) and provide a further explanation of why the predictability of log dividend yields for dividend growth differs across firms.
AB - We use Korean firm-level data to examine whether the predictive ability of log dividend yields depends on the disparity between control and ownership rights. We find that dividend growth predictability via the log dividend yield grows as the disparity between control and ownership rights increases. However, we find that log dividend yields have no significant predictive power for stock returns. Our results are generally consistent with the US firm-level results in Vuolteenaho (2002) and provide a further explanation of why the predictability of log dividend yields for dividend growth differs across firms.
KW - Control-ownership disparity
KW - Dividend growth predictability
KW - Dividend yield
KW - Stock return predictability
UR - http://www.scopus.com/inward/record.url?scp=85041288285&partnerID=8YFLogxK
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U2 - 10.1016/j.frl.2018.01.003
DO - 10.1016/j.frl.2018.01.003
M3 - Article
AN - SCOPUS:85041288285
SN - 1544-6123
VL - 27
SP - 6
EP - 11
JO - Finance Research Letters
JF - Finance Research Letters
ER -