Entrenched CEO, Loss Aversion Behavior on Dividend Policy of Listed Firms in Thailand
AbstractThis study aims to investigate the dividend policy of listed firms in Thailand stock exchange market by integrating two sides: demand side (investors) and supply side (CEO) together. According to 5 years backward time series yearly data from 2011 to 2015 of qualified, the logit model in the current study can explain well on dividend policy not only aligned with some theories both in modern finance, such as agency theory, life cycle theory and catering theory, but also complied with some theories behavioral finance field, such as loss aversion effects (risk aversion). Furthermore, the findings emphasized the effects of management entrenchment hypothesis as well as the degree of loss aversion for both CEO and individual investor and how such factors affect the dividend policy (pay or not pay) by including other fixed factors of firms, such as firm size, leverage, profitability. Further, the findings can be used by both institutional investors and individual investors to select firms to invest according to their risk preference; at same time, these findings also fill the gap in academic literatures that there are few studies on dividend policy of listed firms in Thailand by using theories in both modern and behavioral finance fields.
Jun 22, 2017
How to Cite
LI, Zhongwu. Entrenched CEO, Loss Aversion Behavior on Dividend Policy of Listed Firms in Thailand. Journal submission manual - ASEAN Journal of Management & Innovation, [S.l.], v. 4, n. 1, p. 17-31, june 2017. ISSN 2351-yyyz. Available at: <http://journal.stamford.edu/index.php/ajmi/article/view/670>. Date accessed: 21 aug. 2017.