Does Investor Protection Affect Corporate Dividend Policy? Evidence from Asian Markets

Bulletin of Economic Research, Forthcoming

21 Pages Posted: 13 Dec 2021

See all articles by Seyed Alireza Athari

Seyed Alireza Athari

Cyprus International University; Eastern Mediterranean University - Department of Banking and Finance; Girne American University

Date Written: October 16, 2021

Abstract

This study investigates the nexus between investor protection and dividend policy for 517 listed non-financial firms operating in Asian countries between the 2008- 2017 period. The dynamic panel data model (System-GMM) reveals that stronger investor protection is associated with higher dividend payouts, and firms increase dividends, specifically in response to the rise of the extent of disclosure and director liability and also ease of shareholder suits. Besides, the results highlight that firms pay out fewer dividends in cases of growth opportunity particularly in environments with stronger investor protection, more developed financial market, and common-law system. Results are robust when alternative specifications are implemented.

Keywords: Investors protection; Dividend policy; Common-law; Financial market development; Asian markets

Suggested Citation

Athari, Seyed Alireza, Does Investor Protection Affect Corporate Dividend Policy? Evidence from Asian Markets (October 16, 2021). Bulletin of Economic Research, Forthcoming , Available at SSRN: https://ssrn.com/abstract=3944043

Seyed Alireza Athari (Contact Author)

Cyprus International University ( email )

Nicosia
Nicosia
Cyprus

Eastern Mediterranean University - Department of Banking and Finance ( email )

Fmagusta North Cyprus, via Mersin-10
Turkey

Girne American University ( email )

Faculty of Architecture
Girne American University(GAU)
Girne(Kyrenia), Via Mersin-10 99428
Cyprus

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