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
This work is licensed under a Creative Commons Attribution 4.0 License.
Department
Accounting and Finance
Recommended Citation
Douglas J. Cumming, David Javakhadze, and Tijana Rajkovic. "Unlocking Dividends: The impact of managerial social capital on international corporate payouts" Journal of International Financial Markets, Institutions and Money (2024). https://doi.org/10.1016/j.intfin.2024.102025