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Do ADR Firms Have Different Dividend Policies Than U.S. Firms? A Comparative Study

Author

Listed:
  • Shenghui Tong

    (Department of Finance, Siena College, Albany, NY 12211, USA)

  • James Murtagh

    (Department of Finance, Siena College, Albany, NY 12211, USA)

  • Richard Proctor

    (Department of Finance, Siena College, Albany, NY 12211, USA)

Abstract

This paper examines and compares the dividend policies of American depository receipt (ADR) firms and U.S. firms and identifies the factors that determine these policies for both types of companies. We find that ADR firms have higher dividend yields than U.S. firms, while U.S. firms have higher stock repurchase ratios than ADR firms. Results from univariate comparisons and multivariate analysis show that the determining factors of dividend payout and stock repurchases differ between these two types of firms. This finding holds for the robustness check conducted in this study. This paper provides further evidence regarding dividend policies of ADR firms and sheds light on the differences in dividend policies between non-U.S. firm and U.S. firms.

Suggested Citation

  • Shenghui Tong & James Murtagh & Richard Proctor, 2022. "Do ADR Firms Have Different Dividend Policies Than U.S. Firms? A Comparative Study," IJFS, MDPI, vol. 10(1), pages 1-10, February.
    • Handle: RePEc:gam:jijfss:v:10:y:2022:i:1:p:14-:d:752495
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    References listed on IDEAS

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    Cited by:

    1. Milašinović Marko & Radojević Aleksandra & Jovković Biljana, 2023. "Characteristics of the Board of Directors and Dividend Policy: A Case Study of Banks in Western Balkans," Naše gospodarstvo/Our economy, Sciendo, vol. 69(1), pages 10-18, March.

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