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Dividend policy and socio-cultural factors: some preliminary findings

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  • Hanaan Yaseen

Abstract

This study analyzes the impact of socio-cultural factors on dividend policy in 83 countries, for 12,150 companies in the period of 2009-2013. Using a hierarchical linear modelling it is noticed that there is a significant influence of socio-cultural factors on the dividend payout decision. Also, some financial factors, considered classics in literature, have been tested. Using a Logit-Normal Generalized Linear Mixed Effects Model it is proven that there is an association between socio-cultural factors and the probability to pay dividends. The main results confirm that religion, corruption, anti-self dealing index, law system, property rights and business freedom index have a significant impact on dividend policy.

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  • Hanaan Yaseen, 2018. "Dividend policy and socio-cultural factors: some preliminary findings," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 10(2), pages 077-094, December.
    • Handle: RePEc:rfb:journl:v:10:y:2018:i:2:p:077-094
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