Publication Date

9-1-2024

Document Type

Article

Publication Title

Journal of International Financial Markets, Institutions and Money

Volume

95

DOI

10.1016/j.intfin.2024.102025

Abstract

We present robust international evidence that managerial social capital is a significant determinant of dividend policy worldwide. Our analysis reveals that social capital mitigates information asymmetry and financial constraints, thereby resulting in increased dividend payouts. The effect is particularly pronounced for firms anticipating high cash retention costs. These findings are consistent with the pecking-order perspective of corporate payouts. Moreover, we identify a significant moderating role of shareholder legal protection and national cultural characteristics. Our results remain robust across alternative model specifications and tests for endogeneity.

Keywords

Dividend policy, International, Social capital, Social networks

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

Department

Accounting and Finance

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