Determinants of the First Cash Payout Decision of Listed Firms: The Role of Industry Factors
This study examines the role of industry factors as determinants of the first cash dividend payout decision of firms listed during the period 1983-2002. We find that the likelihood of a firm initiating its first ever post-IPO cash dividends in a particular year is significantly positively related to the prior-year percentage of cash-dividend-paying firms in the industry. This result suggests that firms take their cues from their industry peers when they decide on the timing of their first ever cash payout. We also find that a firm’s cash dividend initiation decision is significantly negatively related to industry concentration, but is not significantly related to industry growth opportunities after we have controlled for market and firm-level variables that could affect the firm’s dividend initiation policy.
Sheng-Syan Chen Kim Wai Ho Yang-Pin Shen Chia-Yuan Jiang
Department of Finance, College of Management, National Taiwan University, No. 85, Sec. 4, Roosevelt Division of Banking and Finance, Nanyang Business School, Nanyang Technological University, Singapor Department of Finance, College of Management, Yuan Ze University, Taiwan
国际会议
广州
英文
1-29
2009-07-07（万方平台首次上网日期，不代表论文的发表时间）