Market Structure and Corporate Payout Policy: Evidence from a Natural Experiment

2018 ◽  
Author(s):  
Xiongshi Li ◽  
Mao Ye ◽  
Miles Zheng
Keyword(s):  
Market Structure ◽  
Natural Experiment ◽  
Payout Policy

scholarly journals Dividend taxation, ownership structure and payout policy: Evidence from India

2007 ◽  
Vol 4 (3) ◽  
pp. 287-302
Author(s):  
Chandrasekhar Krishnamurti ◽  
M.S. Narasimhan
Keyword(s):  
Ownership Structure ◽  
Natural Experiment ◽  
Payout Policy ◽  
Firm Valuation ◽  
Indian Government ◽  
Double Taxation ◽  
Taxation Policy ◽  
Personal Taxes ◽  
Rule Change ◽  
The Impact

Despite the widespread criticism against double taxation of dividends, most countries follow the policy of taxing the same income twice – once when the corporations earn it and a second time when shareholders receive it. Critics of the double taxation policy clamor for its abolition citing the economic inefficiencies it engenders. In 1997, the Indian government eliminated double taxation of dividends by exempting dividend income from personal taxes but requiring the firms to pay a 10% tax on the amount of dividend distributed. Using this rule change as a natural experiment, we examine the impact of this rule change on firm valuation. We show that elimination of double taxation on dividends is not unambiguously beneficial to the stockholders of the firm. We find that tax status and ownership structure play a significant role in explaining the direction of observed changes in valuation. An interesting finding of this paper is that shareholders seem to value visibility. Visible firms are subject to the disciplining effect of more stringent disclosures in the financial press. We do find pervasive evidence that firms increased their dividends subsequent to rule change. We however, do not find any association between the change in dividends and ownership structure

scholarly journals Market structure effects on wages in the Brazilian industrial firms

2011 ◽  
Vol 41 (3) ◽  
pp. 521-536
Author(s):  
Gilson Geraldino Silva-Jr
Keyword(s):  
Market Structure ◽  
Market Share ◽  
Natural Experiment ◽  
Manufacturing Sector ◽  
Empirical Studies ◽  
Control Potential ◽  
Firm Level ◽  
Industrial Firms ◽  
Employee Data ◽  
Data Level

In this paper we analyze market structure effects on wage in the Brazilian manufacturing sector between 1998 and 2005. Our comprehensive linked employer-employee data has observation at firm and worker data level, as market share, wages and skills. We also control potential endogeneity through a quasi-natural experiment. There are few empirical studies analyzing market structure effects on wages at firm level. As far we know it is the first study in this subject for Brazilian Industrial firms.

Contract institutions in the Russian economy: The sphere of state, municipal, and regulated procurement

2017 ◽  
pp. 93-110 ◽  
Author(s):  
O. Anchishkina
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Market Structure ◽  
Market Equilibrium ◽  
Statistical Evidence ◽  
Market Model ◽  
Market Behavior ◽  
Database Analysis ◽  
Russian Economy ◽  
Contracting Model

The article synthesizes information on database analysis of state, municipal, and regulated procurement through which Russian contract institutions and the market model are investigated. The inherent uncertainty of quantity indicators on contracting activities and process is identified and explained. The article provides statistical evidence for heterogeneous market structure in state and municipal procurement, and big player’s dominance. A theoretical model for market behavior, noncooperative competition and collusion is proposed, through which the major trends are explained. The intrinsic flaws and failure of the current contracting model are revealed and described. This ineffectiveness is regarded to be not a limitation, but a challenge to be met. If responded to, drivers for economic growth and market equilibrium will be switched on.

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