Titre :

Firm-level political risk and dividend payout

Auteur(s) :

Ahmad, Muhammad Farooq [Auteur]
SKEMA Business School
Aziz, Saqib [Auteur]
ESC Rennes School of Business
El-Khatib, Rwan [Auteur]
Zayed University
Kowalewski, Oskar [Auteur]
Lille économie management - UMR 9221 [LEM]

Titre de la revue :

International Review of Financial Analysis

Pagination :

102546

Éditeur :

Elsevier

Date de publication :

2023-03

ISSN :

1057-5219

Discipline(s) HAL :

Sciences de l'Homme et Société/Gestion et management
Sciences de l'Homme et Société/Economies et finances

Résumé en anglais : [en]

We use a novel measure of firm-level political risk based on a textual search technique on firms' quarterly earnings conference transcripts to explain dividend payouts in publicly listed U.S. firms. We find a positive and ...
Lire la suite >We use a novel measure of firm-level political risk based on a textual search technique on firms' quarterly earnings conference transcripts to explain dividend payouts in publicly listed U.S. firms. We find a positive and significant effect of firm-level political risk on dividend payouts, particularly in uncertainties related to economics, institutions, technology, trade, and security. The effect is more pronounced in firms with better corporate governance, less analyst follow-up, and higher growth opportunities. These results support the signaling role of dividends rather than the role of agency theory in explaining dividend payouts when firms are associated with higher levels of political risk. We also find the effect to be prominent after controlling for an aggregate measure of economic policy uncertainty and in poor economic conditions and in major political event periods. We address endogeneity concerns by running placebo tests and conducting instrumental variable analysis and we alleviate self-selection bias by performing propensity score matching technique.Lire moins >

Langue :

Anglais

Vulgarisation :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL