Corporate social responsibility and dividend policy

This study outlines and tests two corporate social responsibility (CSR) views of dividends. The first view argues that firms are likely to pay fewer dividends because CSR activities lower the cost of equity, encouraging firms to invest or hoard cash rather than to pay dividends. The second view sugg...

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Main Authors: Cheung, Adrian, Hu, May, Schwiebert, J.
Format: Journal Article
Published: Wiley-Blackwell Publishing Asia 2016
Online Access:http://hdl.handle.net/20.500.11937/2799
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author Cheung, Adrian
Hu, May
Schwiebert, J.
author_facet Cheung, Adrian
Hu, May
Schwiebert, J.
author_sort Cheung, Adrian
building Curtin Institutional Repository
collection Online Access
description This study outlines and tests two corporate social responsibility (CSR) views of dividends. The first view argues that firms are likely to pay fewer dividends because CSR activities lower the cost of equity, encouraging firms to invest or hoard cash rather than to pay dividends. The second view suggests that CSR activities are positive NPV projects that increases earnings and hence dividend payouts. The first (second) view predicts that firms with a stronger involvement in CSR activities should be associated with a lower (higher) dividend payouts. The finding supports the second view and is robust.
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institution Curtin University Malaysia
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publisher Wiley-Blackwell Publishing Asia
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spelling curtin-20.500.11937-27992018-10-16T05:55:55Z Corporate social responsibility and dividend policy Cheung, Adrian Hu, May Schwiebert, J. This study outlines and tests two corporate social responsibility (CSR) views of dividends. The first view argues that firms are likely to pay fewer dividends because CSR activities lower the cost of equity, encouraging firms to invest or hoard cash rather than to pay dividends. The second view suggests that CSR activities are positive NPV projects that increases earnings and hence dividend payouts. The first (second) view predicts that firms with a stronger involvement in CSR activities should be associated with a lower (higher) dividend payouts. The finding supports the second view and is robust. 2016 Journal Article http://hdl.handle.net/20.500.11937/2799 10.1111/acfi.12238 Wiley-Blackwell Publishing Asia fulltext
spellingShingle Cheung, Adrian
Hu, May
Schwiebert, J.
Corporate social responsibility and dividend policy
title Corporate social responsibility and dividend policy
title_full Corporate social responsibility and dividend policy
title_fullStr Corporate social responsibility and dividend policy
title_full_unstemmed Corporate social responsibility and dividend policy
title_short Corporate social responsibility and dividend policy
title_sort corporate social responsibility and dividend policy
url http://hdl.handle.net/20.500.11937/2799