IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v53y2021i29p3334-3346.html
   My bibliography  Save this article

Product market competition, reputation, and dividend policy

Author

Listed:
  • Eun Kang
  • Ryumi Kim

Abstract

This paper examines the effect of product market competition on the dividend policy of firms. Previous studies report different relationships between product market competition and dividend payout policies. This paper aims to clarify the relationship between product market competition and dividend payout policies by dividing dividend-paying firms into two groups, high dividend firms and low dividend firms, based on the level of dividends. We hypothesize that when the product market is more competitive, high dividend firms pay more dividends, but low dividend firms pay less dividends. According to our test using all firms listed on the NYSE, AMEX, and NASDAQ stock exchanges from the CRSP, the results support our hypothesis. This paper also emphasizes the importance of the dividend reputation in the analysis of dividend-related matters. Firms with dividend reputation pay higher dividends than firms with no reputation.

Suggested Citation

  • Eun Kang & Ryumi Kim, 2021. "Product market competition, reputation, and dividend policy," Applied Economics, Taylor & Francis Journals, vol. 53(29), pages 3334-3346, June.
    • Handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3334-3346
    DOI: 10.1080/00036846.2021.1877255
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00036846.2021.1877255
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036846.2021.1877255?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Mo & Li, Yan & Dong, Dayong, 2023. "Strategic information disclosure and the cost of equity capital: Evidence from China," Finance Research Letters, Elsevier, vol. 51(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:53:y:2021:i:29:p:3334-3346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.