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Does air pollution affect dividend policy

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  • Hu, Zhenyu
  • Chang, Jui-Chin

Abstract

We investigate the influence of air pollution in a firm's dividend policy in China. We find that firms pay lower amount of cash dividends if the firms are located at a severe air pollution city. Our analyses further show that the effect is stronger in the state-owned firms, key monitoring firms, and International Organization for Standardization (ISO) 14001 non-certified firms.

Suggested Citation

  • Hu, Zhenyu & Chang, Jui-Chin, 2022. "Does air pollution affect dividend policy," Finance Research Letters, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:finlet:v:49:y:2022:i:c:s154461232200383x
    DOI: 10.1016/j.frl.2022.103183
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    Cited by:

    1. Chen, Wenchuan & Xiang, Yuhan & Liu, Jin & Zhu, Yilin, 2022. "Foreign investor and industrial pollution: Evidence from sulfur dioxide emission," Finance Research Letters, Elsevier, vol. 50(C).

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    More about this item

    Keywords

    Dividend policy; Air pollution; Air quality index (AQI);
    All these keywords.

    JEL classification:

    • G35 - Financial Economics - - Corporate Finance and Governance - - - Payout Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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