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Does investor protection affect corporate dividend policy? Evidence from Asian markets

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  • Seyed Alireza Athari

Abstract

This study investigates the nexus between investor protection and dividend policy for 517 listed nonfinancial firms operating in Asian countries between the period 2008 and 2017. The dynamic panel data model (System‐GMM) reveals that stronger investor protection is associated with higher dividend payouts, and firms increase dividends, specifically in response to the rise of the extent of disclosure and director liability and also ease of shareholder suits. Besides, results highlight that firms pay out fewer dividends in cases of growth opportunity particularly in environments with stronger investor protection, a more developed financial market, and a common‐law system. Results are robust when alternative specifications are implemented.

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  • Seyed Alireza Athari, 2022. "Does investor protection affect corporate dividend policy? Evidence from Asian markets," Bulletin of Economic Research, Wiley Blackwell, vol. 74(2), pages 579-598, April.
    • Handle: RePEc:bla:buecrs:v:74:y:2022:i:2:p:579-598
    DOI: 10.1111/boer.12310
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    2. Desheng Liu & Yizhen Wang & Mingsheng Li, 2024. "Is it just for shareholders or for all stakeholders? Evidence based on carbon emissions and cash dividends from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(4), pages 4069-4094, December.

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