Corporate dividend behavior under uncertainty: A study of Chinese firms

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2025-03-13 DOI:10.1016/j.pacfin.2025.102747

Chien-Chiang Lee , Chih-Wei Wang , Chun-Wei Huang , Susan Sunila Sharma

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引用次数: 0

Abstract

This paper investigates the impact of Trade Policy Uncertainty (TPU) on the cash dividend policies of Chinese firms from 2000 to 2019. The findings reveal that TPU negatively influences firms' cash dividend policies, prompting firms to reduce cash dividends under heightened uncertainty. Furthermore, firms and industries in different regions exhibit varied responses to TPU's effects on cash dividends. In R&D-intensive firms, the study finds a consistent negative impact of TPU on cash dividends, regardless of whether the firms face financial constraints. Conversely, firms with reduced R&D spending and financial constraints tend to increase cash dividends under TPU, potentially due to agency-related issues. Overall, TPU significantly affects firms' cash dividend policies, and these effects remain robust when accounting for R&D intensity, financial constraints, and agency problems. This study provides valuable insights, highlighting the importance of incorporating cash dividend policies into corporate strategies during periods of high uncertainty.

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.