Control-ownership disparity and stock market Predictability: Evidence from Korean chaebols

Denis Yongmin Joe, Frederick Dongchuhl Oh, Cheolbeom Park

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

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.

Original languageEnglish
JournalFinance Research Letters
DOIs
Publication statusAccepted/In press - 2018 Jan 1

Fingerprint

Ownership
Dividend yield
Stock market
Predictability
Korean chaebol
Dividends
Ownership and control
Firm-level data
Predictive ability
Predictive power
Stock returns

Keywords

  • Control-ownership disparity
  • Dividend growth predictability
  • Dividend yield
  • Stock return predictability

ASJC Scopus subject areas

  • Finance

Cite this

Control-ownership disparity and stock market Predictability : Evidence from Korean chaebols. / Joe, Denis Yongmin; Oh, Frederick Dongchuhl; Park, Cheolbeom.

In: Finance Research Letters, 01.01.2018.

Research output: Contribution to journalArticle

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