TY - JOUR

T1 - Corporate social responsibility and dividend policy

AU - Cheung, Adrian

AU - Hu, May

AU - Schwiebert, Jörg

N1 - Publisher Copyright: © 2016 AFAANZ

PY - 2018/9/1

Y1 - 2018/9/1

N2 - 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.

AB - 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.

KW - Sustainability sciences, Communication

KW - Corporate social responsibility

KW - Dividends

UR - http://www.scopus.com/inward/record.url?scp=84990238896&partnerID=8YFLogxK

UR - https://www.mendeley.com/catalogue/86e59798-b6fa-3cc4-b046-b94d71a53282/

U2 - 10.1111/acfi.12238

DO - 10.1111/acfi.12238

M3 - Journal articles

VL - 58

SP - 787

EP - 816

JO - Accounting and Finance

JF - Accounting and Finance

SN - 0810-5391

IS - 3

ER -