IDEAS home Printed from https://ideas.repec.org/a/wly/finmar/v31y2022i2-3p87-118.html
   My bibliography  Save this article

Environmental Concerns and Impression Offsetting: New Evidence on Dividend Payout

Author

Listed:
  • Ying Wang
  • Mingsheng Li
  • Amina Kamar

Abstract

We apply the impression management theory and propose that firms located in more polluted areas have strong incentives to offset the negative perceptions of their local area pollution due to shareholders’ environmental concerns. In terms of dividend policy, we predict and find that location greenness (LG), a proxy for environmental image, negatively affects firms’ dividend payouts. The effect is more pronounced for firms with high information asymmetry and agency costs. The dividend payouts due to LG have a larger impact on agency cost reductions than regular dividends. Firms use dividends and social engagements as substitutes to enhance their reputation.

Suggested Citation

  • Ying Wang & Mingsheng Li & Amina Kamar, 2022. "Environmental Concerns and Impression Offsetting: New Evidence on Dividend Payout," Financial Markets, Institutions & Instruments, John Wiley & Sons, vol. 31(2-3), pages 87-118, July.
    • Handle: RePEc:wly:finmar:v:31:y:2022:i:2-3:p:87-118
    DOI: 10.1111/fmii.12165
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/fmii.12165
    Download Restriction: no
    File URL: https://libkey.io/10.1111/fmii.12165?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
    ---><---

    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:wly:finmar:v:31:y:2022:i:2-3:p:87-118. 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: Wiley Content Delivery (email available below). General contact details of provider: .

    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.