 Asset redeployability and dividend payout policyPuman Ouyang and Ligang Zhong The Quarterly Review of Economics and Finance, 2023, vol. 90, issue C, 91-105 Abstract: This research examines the effects of real asset redeployability on dividend payout policy, showing that firms with higher real asset redeployability tend to pay more dividends. Our results hold after controlling for cash holdings, current assets, and other firm characteristics. We hypothesize that asset redeployability increases dividend payout through the financial constraint channel, the signaling channel and the agency problem channel. Our empirical results suggest that all three channels are at play and that the positive effect is more pronounced for firms with more severe financial constraints, stronger signaling incentives, and for firms that have more severe free cash flow problems. Overall, our findings imply that asset redeployability is an important determinant of corporate dividend payout policy. Keywords: Dividend policy; Asset redeployability; Financial constraints; Free cash flow problems; Signaling effect (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:90:y:2023:i:c:p:91-105 DOI: 10.1016/j.qref.2023.05.005 Access Statistics for this article The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty More articles in The Quarterly Review of Economics and Finance from Elsevier |
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