Dividend payouts, cash‐flow uncertainty and the role of institutions

Zhe An, Wenlian Gao, Donghui Li and Dezhu Ye

Journal of Business Finance & Accounting, 2022, vol. 49, issue 7-8, 1356-1390

Abstract: This study examines the impact of cash‐flow uncertainty on corporate dividend payouts and how this impact is shaped by country‐level institutional environments. Employing a large sample of 41,157 firms in 49 economies from 1996 to 2018, we document that cash‐flow uncertainty has a negative impact on dividend payouts and that this negative relation is more pronounced in economies with stronger institutions. Our results indicate that strong institutions could facilitate information disclosure, reduce government interventions and promote corporate financing opportunities, thus making firms less subject to agency costs and less motivated to disguise their cash‐flow risk.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/jbfa.12595

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:49:y:2022:i:7-8:p:1356-1390

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().