Does political economy reduce agency costs? Some evidence from dividend policies around the world

This study shows that firms in proportional-electoral countries pay out lower dividends and that the correlation between a firm's growth potential and dividend payout ratio is weaker in proportional-electoral countries. However, firms in proportional-electoral countries that cross-list in majoritarian system countries, tend to pay out higher dividends and the negative relation between growth potential and dividend payout tend to be stronger than their peers that do not cross-list. For a few countries that changed their electoral system towards a more proportional system, we observe a decrease in dividend payout ratio and a weaker relation between growth and dividends after the change. Overall these results indicate that a country's political system affects the severity of agency problems. Further, the effect of legal origin on dividend policy reverses once we include the political economy variables in the regressions. We also document that the electoral system not only affects the amount of dividends paid by a firm but also the form of payment.

A model of pilgrimage tourism: process, interface, people and sequence

Purpose – This paper aims to examine the elements of the main process of pilgrimage tourism (PT), occurring between pilgrims, hikers and tourists along a trail towards a holy site. PT is defined as a process consisting of three sub-processes over time and across contexts: pre-process, main process and post-process. Design/methodology/approach – Explores the core reasons for PT through active participation and observation. Findings – This study reveals different layers, levels, views, approaches and perspectives involved in people-based processes. The study attempts to conceptualize the elements involved between people committed and dedicated to PT. Research limitations/implications – The introduced model of PT stresses the processes and interfaces involved over time and across contexts between people, with the same or different sequences. There is, to the best of the authors’ knowledge, no previous research that explores and describes the processes and interaction between pilgrims, hikers and tourists. Practical implications – The ultimate experience at an individual level differs, depending upon the outcome of the PT-elements of the model of PT (i.e. processes, interfaces, people and sequences). Social implications – From a social science perspective, the research examines the motives of different traveller types and looks at their different perspectives of being involved with the same physical activity of travel. The study emphasises that we can be involved in the same physical activity, but embrace it with different levels of personal and emotional engagement. Originality/value – A conceptualized model of PT containing four elements (process, interface, people and sequence) – all of which offer a foundation for structuring and assessing empirical research, and provide additional insights and knowledge into the dynamics and complexity involved specifically in a people-based process consisting of interfaces and sequences when travelling.