CEO Marital Status and Dividend Policy

43 Pages Posted: 29 Mar 2022 Last revised: 16 Dec 2022

See all articles by Md Noman Hossain

Md Noman Hossain

Central Washington University - College of Business

Monika K. Rabarison

The University of Texas Rio Grande Valley

Brandon Ater

affiliation not provided to SSRN

Christian K. Sobngwi

affiliation not provided to SSRN

Date Written: December 9, 2022

Abstract

We investigate whether and how CEO marital status is related to dividend policy. We find that firms run by single CEOs are less likely to pay dividends. Further analyses reveal that the aforementioned relation is stronger for single CEOs who are more risk-seeking, have compensation packages with lower pay-performance sensitivity, are less conservative, or are less engaged in corporate social responsibility activities. Our results hold in multiple robustness and endogeneity tests, including propensity score matching, difference-in-differences estimation, and an instrumental variable regression. Overall, our findings contribute to the literature highlighting the importance of CEOs’ personal attributes for corporate decisions.

Keywords: Dividend policy, CEO marital status, Risk preferences, Behavioral corporate finance

JEL Classification: G35, G41

Suggested Citation

Hossain, Md Noman and Rabarison, Monika and Ater, Brandon and Sobngwi, Christian K., CEO Marital Status and Dividend Policy (December 9, 2022). Journal of Corporate Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4052086 or http://dx.doi.org/10.2139/ssrn.4052086

Md Noman Hossain

Central Washington University - College of Business ( email )

Ellensburg, WA 98926
United States

Monika Rabarison (Contact Author)

The University of Texas Rio Grande Valley ( email )

1201 W. University Dr.
Edinburg, TX 78539
United States

Brandon Ater

affiliation not provided to SSRN

Christian K. Sobngwi

affiliation not provided to SSRN

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