Does CEO turnover influence dividend policy?

Victor Barros, Maria Guedes, Pedro Santos and Joaquim Miranda Sarmento

Finance Research Letters, 2022, vol. 44, issue C

Abstract: This study provides evidence of the influence of CEO turnover on dividend policy, using a sample of 4,043 firm-year observations of S&P500 constituents from 1992 to 2017. We find that firms are more likely to pay dividends following a CEO turnover, although the likelihood is offset in the case of underperforming firms. Dividends tend to be less stable and larger following a CEO turnover. Overall, our findings augment existing knowledge on the effect of CEO turnover in relation to various aspects of dividend policy; namely, the decision to pay a dividend, the dividend policy stability, and the dividend yield.

Keywords: CEO turnover; Dividend policy; Dividend yield (search for similar items in EconPapers)
JEL-codes: G32 G35 G40 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:44:y:2022:i:c:s1544612321001665

DOI: 10.1016/j.frl.2021.102085

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