Does a CEO's culture affect dividend policy?

Muhammad Naeem and Shahzad Khurram

Finance Research Letters, 2020, vol. 35, issue C

Abstract: Using a sample of 15,818 firm year observations over the 1996-2015 period, we provide the first evidence on the impact of CEOs cultural background on dividend policy. We find that individualistic CEOs are more likely to pay dividends. Consistent with the private benefits of control and signaling hypotheses, we find that this result is more pronounced in firms with severe agency problems and information asymmetry. This study points to a promising direction for future research to gain a deeper understanding of how the cultural background of managers affect corporate policies and behavior.

Keywords: Dividends; Culture; Agency theory; Asymmetric information (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:35:y:2020:i:c:s1544612319305859

DOI: 10.1016/j.frl.2019.09.017

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