This paper focuses on dominant owners' use of leverage to finance their blockholdings and its relationship to dividend … following the crisis, dividend payouts increase in proportion to pyramidal debt of dominant owners. We inspect pyramidal …

This paper focuses on dominant owners' use of leverage to finance their blockholdings and its relationship to dividend … following the crisis, dividend payouts increase in proportion to pyramidal debt of dominant owners. We inspect pyramidal …

channels through which controlling shareholders expropriate minority shareholders by adopting a policy of excess leverage. We … found that firms with more excess control rights also have more excess leverage and the controlling shareholders of these …'s tunneling behavior. We argue that in emerging markets when legal protection for both creditors and shareholders is weak …

and their controlling shareholders use the resources for tunneling rather than investing in positive NPV projects. We also … party transactions are more positive after NTS reform. This confirms that tunneling by the controlling shareholders actually … reduced. We argue that in emerging markets where legal protection for creditors and shareholders is weak, controlling …

The article analyses inter-dependencies between dividend, capital structure, and cost of capital, factoring the … concentrated ownership. Dividend, leverage, and average cost of capital are inter-linked. However, family firms pay lower dividends …, consistent with family owners extracting rent from external minority shareholders. Additionally, these firms have high leverage …