This study investigates the relationship between dividend policy, firm performance, and value within the Korean market, taking into account the unique context of Chaebol ownership structures. Utilizing a robust dataset of 5478 observations from the Korean Composite Stock Price Index, our empirical analysis employs advanced regression models, revealing distinctive effects of various dividend policy measures through the lenses of interest alignment and managerial entrenchment hypotheses. Surprisingly, while cash dividend payments exhibit a robust positive impact on Tobin’s Q and market-to-book ratios, suggesting an overall positive link with market valuations, a closer inspection reveals divergent impacts for Chaebol and non-Chaebol firms. In Chaebol entities, dividend policy proxies consistently demonstrate positive effects on performance metrics, aligning with the interest alignment hypothesis and highlighting strategic signaling efforts. Conversely, non-Chaebol firms exhibit intriguingly negative impacts, supporting the managerial entrenchment hypothesis and implying potential challenges to market value. Firms should prioritize transparent communication on dividend policies for improved investor decision making and enhanced corporate governance in the dynamic Korean market.

This study examines the interplay between leverage, dividend policy, and market performance in Nigeria’s manufacturing sector during the economic downturn of 2016–2020. Drawing on signaling and trade-off theories, we investigate how firms balanced leverage and dividend payouts to sustain performance amidst macroeconomic shocks, including currency depreciation, inflation, and weakened consumer demand. Using panel data from 26 Nigerian Stock Exchange-listed firms, the study applies pooled ordinary least squares (POLS) and fixed-effect models (FEM) to analyze the direct and interactive effects of leverage and dividend policy on market performance, controlling for profitability, firm size, and taxation. The findings reveal that leverage generally exerts a negative effect on firm value, particularly long-term debt, which increases financial distress risks. However, the interaction between leverage and dividend payouts positively moderates this relationship, suggesting that firms use dividends strategically to signal stability and mitigate leverage-related risks. Profitability emerges as a key determinant of firm value, while short-term debt provides operational flexibility, and taxation imposes significant financial strain. Larger firms demonstrate greater resilience, benefiting from scale economies and diversified funding sources. This research highlights the importance of an integrative financial strategy during periods of economic uncertainty, emphasizing the complementary roles of leverage and dividend policy in enhancing firm value. The findings offer critical insights for policymakers and corporate managers in emerging markets, advocating for tax reforms and prudent financial management to improve business resilience. By addressing gaps in the literature, this study contributes to the understanding of financial decision-making in developing economies.

This study investigates the interdependencies between debt capital and dividend policy as complementary factors influencing firm value among corporations listed on the Korea Composite Stock Price Index (KOSPI). Using Tobin’s Q as a firm value metric and employing robust econometric techniques (OLS, 2-SLS, and GMM), the analysis reveals that while debt and dividend policies independently reduce firm value, their interaction produces a synergistic effect that increases value. The findings further indicate the dual role of Chaebol ownership structures, which, despite their association with lower firm value, mitigate the negative effects of financial policies. Additionally, firm size is found to negatively impact value, whereas free cash flow has a significant positive effect. By disentangling the complex dynamics of capital structure, dividend strategies, and ownership configurations, this study offers actionable insights for managers, investors, and policymakers. It emphasizes the importance of balanced financial practices and governance reforms tailored to concentrated ownership environments.

In the modern corporation, understanding sustainable cost management practices is essential for promoting economic resilience and resource efficiency. This study investigates how ownership structures influence the behavior of selling, and general and administrative (SG&A) costs during periods of sales fluctuations in South Korean firms, with particular attention to Chaebols. Drawing upon agency theory and corporate governance perspectives, we examine whether proxies for agency costs, namely, free cash flow, asset utilization ratios, and operating expense ratios, explain variations in SG&A cost responses to changes in revenue. Utilizing a panel dataset of 4279 firm-year observations from KOSPI-listed companies over the period 2011–2021, we employ Pooled Ordinary Least Squares (OLS), Fixed Effects, Random Effects, and Generalized Method of Moments (GMM) estimations to model SG&A cost behavior. The analysis incorporates regression-based interaction terms that capture asymmetric cost adjustments during sales declines, commonly referred to as cost stickiness. Our findings indicate that firms with concentrated ownership, such as Chaebols, exhibit significantly lower SG&A cost stickiness, reflecting stronger financial discipline and more efficient resource allocation. In contrast, firms with dispersed ownership demonstrate more pronounced cost stickiness, consistent with governance frictions and managerial discretion. These results emphasize the moderating role of ownership structure in cost behavior and highlight its implications for sustainable corporate governance. Our study contributes to the literature on cost management and financial sustainability by offering empirical insights from a distinctive institutional setting. Policy recommendations include enhancing internal controls, promoting transparent cost practices, and encouraging shareholder oversight to reinforce long-term efficiency.

This study investigates the effect of dividend policy on firm performance and value in the Korean market, taking into account the unique context of Chaebol ownership structures. Analyzing 5,478 observations from the Korean Composite Stock Price Index, the research employs multiple regression models to explore the effects of various dividend policy measures under alignment and entrenchment theories. The key findings reveal significant impacts of cash dividend payment on firm value, while dividend yield and dividend policy exhibit varying associations. In the Chaebol and non-Chaebol context, mixed results suggest complex interactions between dividend policy and business outcomes. Policy recommendations emphasize transparent communication about dividend policy to mitigate information asymmetry and enhance corporate governance in the Korean market.

This article investigates the effects of agency problems and dividend policy on the asymmetric behaviour of Selling, General, and Administrative (SG&A) expenses, with an emphasis on Korean business ownership structures. Employing a robust dataset of 4,279 observations from the Korean Composite Stock Price Index from 2011 to 2021, our empirical investigation combined multiple regression models such as OLS, fixed effects, random effects and the Generalised Method of Moments (GMM) to contain endogeneity problems. The research objectives include the examination of the relationship between SG&A cost asymmetry and agency problems, the impact of dividend policy on SG&A costs, and the intervening function of Korean business ownership structures, particularly Chaebols. Unexpectedly, the results reveal that higher free cash flow is linked to lower SG&A cost asymmetry, suggesting that agency concerns can be mitigated in such corporations. Improved asset utilisation increases cost asymmetry, whereas larger operating expenses reduce asymmetry. Furthermore, higher cash dividends and payout ratios are associated with reduced SG&A cost asymmetry, which contradicts the premise that dividend constraints correlate with a higher degree of cost asymmetry. According to ownership structure analysis, Chaebols' concentrated ownership results in stronger control over cash flow, eliminating cost asymmetry more efficiently than in non-Chaebol firms. These findings add to the literature on agency theory, cost behaviour, and corporate governance, providing managers and shareholders with beneficial insights. To promote business sustainability, improved handling of agency concerns and cost efficiency, this study recommends tailored corporate governance policies that takes ownership structures into account.