Minority shareholder activism (MSA) on online interactive platforms is a new form of corporate governance in China. This paper investigates whether and how dividend-related MSA affects corporate dividend policies. We find listed firms are more likely to pay dividends and raise payout ratios with...

Economic literature suggests that banks change their dividend payouts for three main reasons. They may be willing to signal good future profitability to shareholders to address information asymmetry, or use dividends to mitigate the agency costs, or could come under pressure from prudential...

Minority shareholder activism (MSA) on online interactive platforms is a new form of corporate governance in China. This paper investigates whether and how dividend-related MSA affects corporate dividend policies. We find listed firms are more likely to pay dividends and raise payout ratios with...

This study investigates zero leverage firms and their choice to pay dividends among New Zealand (NZ) listed firms for the period 2007 – 2021. Overall our findings indicate that after allowing for financial constraints limiting firm debt capacity and firm preference for financial flexibility,...

This paper examines whether promotion-based tournament incentives affect corporate dividend payouts. Using the pay gap between the CEO and non-CEO executives as a proxy for tournament incentives, we find that tournament incentives are negatively related to corporate dividends. Further analyses...

Using a large sample of firms from 69 countries, we find that reputational risk induced by adverse ESG exposure through media channels is associated with greater corporate dividends payout ratios. This result is robust to endogeneity concerns and alternative measures of key variables. The...

We survey the empirical literature on corporate dividend policy, with emphasis on develop- ments over the last two decades. We divide our review into two parts. We first summarize what we “know” about dividend policy – the set of observations about the nature of (and trends in) dividend...

In this paper, we examine the changes in corporate dividend policies during the COVID-19 shock. For empirical analysis, we employ annual data of 360 companies from the Pakistan Stock Exchange over the period 2015-2020. Using descriptive analysis and Logit regression models, we find that firms...

The study investigates the factors that influence dividend payout policy in public Pakistani manu- facturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so...

We study the dividend payouts of U.S. banks during the 2008 financial crisis. Using a difference-in-differences methodology, we shows that banks with higher share of short-term liabilities to total liabilities, which were thus more exposed to the rollover crisis that took place in 2008,...

Based on China-listed firms, we investigate the relationship between air pollution and dividend payout. We document that air pollution promotes firms to pay higher dividends, and address the endogeneity by regression discontinuity design (RDD) and instrument variable (IV) regression....

We utilise a change to the treatment of franking credits in the hand of domestic shareholders, namely the introduction of fully refundable franking credits, to provide robust evidence on the causal effect of investor-level taxes on corporate dividend policy. Consistent with investors having a...

We model a risk-averse firm owner who wants to maximize the intertemporal expected utility of firm’s dividends. The optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA) of the _rm. According to the empirical evidence, we...

The outbreak of the Covid-19 pandemic massively increased uncertainty about firms’ cash flows and their access to financial markets. We examine its effect on firms’ strategies for preserving cash by suspending dividends and buybacks and raising new funds through bond and equity issues. We...

This paper analyses the impact of capital gains taxation (CGT) on dividend policy among firmsthat are listed at the Karachi Stock Exchange (now, Pakistan Stock Exchange or PSX). The reasonfor choosing the Pakistani market is the country’s idiosyncratic taxation system regarding dividendand...

Relying on a US bank sample, we document the double-edged sword of dividends on the bank's riskiness. Paying dividends exposes banks to stricter market discipline, then decreases the risk-taking behaviors of bank management compared with non-payers, consistent with the Dividend-Stability...

This study investigates the nexus between investor protection and dividend policy for 517 listed non-financial firms operating in Asian countries between the 2008- 2017 period. The dynamic panel data model (System-GMM) reveals that stronger investor protection is associated with higher dividend...

This paper examines the long run and short run link between dividend payout policy and corporate performance of quoted companies in Nigeria over the period 2001-2018. The study employs data of 80 listed companies collected from the audited financial statements of the companies and the...

It is well-known that stock prices fluctuate far more than dividends. Traditional valuation methods are not able to depict this fact. In this paper we incorporate excess volatility into a simple DCF model by considering an autoregressive cash flows process with random coefficients. We show that...

It is well-known that stock prices fluctuate far more than dividends. Traditional valuation methods are not able to depict this fact. In this paper we incorporate excess volatility into a simple DCF model by considering an autoregressive cash flows process with random coefficients. We show that...

In a world full of studies dealing with the relationship of price-to-earnings ratio and the dividend payout ratio, rarely noticeable are those examining the possibility that this relationship may be non-linear. Although rare, studies that aim to fill this gap focus solely on the US capital...

Dividend policy is among the most debated topics in corporate Finance. Determinants of corporate dividend, most commonly firm specific determinants, have attracted much attention of the researchers. This paper mainly investigates the external determinants of dividend policy in Tanzania. The...

Investor-driven "short-termism" is said to harm EU public firms' ability to invest for the long term, prompting calls for the EU to better insulate managers from shareholder pressure. But the evidence offered---rising levels of repurchases and dividends---is incomplete and misleading: it ignores...

Important dimensions of dividend behavior are not well understood. How do dividends behave in extreme states of the world? Why is the risk premium on dividend claims so high? Would dividend bans in crisis states have plausible effects on firms' cost of capital? In this paper we use evidence from...

Using cash flows from a large sample of buyout and venture funds, I show that private equity (PE) distributions predict returns in the industries of funds' specialization. My tests distinguish timing skill from reactions to market conditions and spillover effects of PE activity. Fund managers...

We study how creditor rights and culture interact with one another and influence corporate dividend payout policy. We identify two distinct substitution effects. First, creditors substitute poor legal standing with lower dividends, but only in countries defined as either individualist or with...

This paper documents that site visits as a type of soft activism, increase corporate cashdividend in the post-event year. The casual link is built by using both quasi-naturalexperiment and instrument variable approach. Site visits facilitate communicationamong outside investors and incumbent...

With two news-based measures on war, I document that managers mitigated war risk through dividend cuts, arguably to establish a war chest. Moreover, I find that companies postponed their initial public offerings and that foreign companies were more likely to delist after the onset of wars....

This paper examines the effect of relationship duration with major customer on supplier's payout policies. I find that firm which remains the relation with major customer in a longer period pays higher dividend. This finding is unbiased by the substitutional effect between dividend and...