Do ADR Firms Have Different Dividend Policies Than U.S. Firms? A Comparative Study

Shenghui Tong, James Murtagh and Richard Proctor
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James Murtagh: Department of Finance, Siena College, Albany, NY 12211, USA
Richard Proctor: Department of Finance, Siena College, Albany, NY 12211, USA

IJFS, 2022, vol. 10, issue 1, 1-10

Abstract: This paper examines and compares the dividend policies of American depository receipt (ADR) firms and U.S. firms and identifies the factors that determine these policies for both types of companies. We find that ADR firms have higher dividend yields than U.S. firms, while U.S. firms have higher stock repurchase ratios than ADR firms. Results from univariate comparisons and multivariate analysis show that the determining factors of dividend payout and stock repurchases differ between these two types of firms. This finding holds for the robustness check conducted in this study. This paper provides further evidence regarding dividend policies of ADR firms and sheds light on the differences in dividend policies between non-U.S. firm and U.S. firms.

Keywords: dividend policy; ADR firms; U.S. firms; comparative study (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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