Effect of corporate social responsibility performance on dividend pay-out: Role of corporate governance quality

Maqbool, Zahid; Abid, Ammar; Bhutta, Aamir Inam

doi:10.3389/fpsyg.2022.883952

Cited by 5 publications

(2 citation statements)

References 62 publications

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“…According to Maqbool et al [56], regulatory regulations impact the frequency and amount of dividend disbursements to preserve financial stability. Frequently, the imposition of stringent capital requirements restricts the capacity of a financial institution to allocate dividends, thus serving as a protective measure against possible economic challenges [57,58].…”

Section: Regulatory Impactmentioning

confidence: 99%

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

Olaniyi,

Shah,

Bahuguna

2023

AJEBA

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This paper presents a comparative review of academic research on dividend policies and payments within the banking sector. Dividends represent a critical area of focus due to their implications for bank capital levels, profitability, regulatory compliance, and investor signaling. The literature reviewed spans pre- and post-2008 financial crisis periods and adopts both global and emerging market perspectives. Methodologies include regression analyses, causality tests, descriptive statistics, and financial ratio computations based on regulatory filings, financial statements, and market data datasets. Key findings demonstrate the multifaceted nature of bank dividend strategies, differences across countries, shifts during crises, and complex interplays with financial health metrics. The studies find evidence that dividends provide valuable signals to investors on earnings prospects, aligning with signaling theories. However, interpreting crisis-induced behaviors warrants caution due to short-term deviations. Opportunities exist for further analysis of cross-country variances, crisis responses, and linkages to bank stability. This comparative review enhances academic comprehension of bank dividend policies' motivations, outcomes, and determinants. It highlights the need for judicious balancing of stakeholder demands for returns and growth, an increasingly crucial endeavor amidst global uncertainty.

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Section: Regulatory Impactmentioning

confidence: 99%

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

Olaniyi,

Shah,

Bahuguna

2023

AJEBA

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“…Because of the more excellent earning capability of such firms, superior returns were earned. These earnings were linked to socially responsible investing and higher dividends earned (Maqbool et al, 2022).…”

Section: Csr and Dividend Policymentioning

confidence: 99%

Impact of Corporate Social Responsibility on Dividend Payout Mediated by Accounting Conservatism

Javaid

2023

JDSS

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The purpose of the study is to pinpoint the mediating effect of Accounting Conservatism (AC) in the relationship between Corporate Social Responsibility (CSR) and Dividend Payout (DP) empirically. By reviewing the past studies and literature, the hypotheses have been developed. The data has been gathered from 188 companies listed on the stock exchanges of Pakistan and India. The period of the data is 11 years (2010)(2011)(2012)(2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020). The results show that the prerequisites for the mediating function of AC in the link between CSR and DP are met, and AC is partially mediating in this relationship. This relationship was studied using a generalised mixed model (GMM) to address the issue of endogeneity and unobserved heterogeneity. The results of the study are helpful for the policymakers to formulate policies regarding CSR to enhance the shareholder's wealth.

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Impact of dividend policy on corporate social responsibility: the role of board governance mechanism

Farooq,

Ahmed,

Khan

et al. 2024

JGR

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Purpose This study aims to investigate the impact of dividend policy on a firm’s participation in corporate social responsibility (CSR)-related activities in the context of Pakistani firms. Furthermore, the role of the board governance mechanism in dividend policy-CSR is investigated. Design/methodology/approach The study’s sample consists of 115 nonfinancial Pakistan Stock Exchange-listed firms from 2010 to 2021. A multidimensional financial method is used to assess the firm’s CSR engagement, and dividend policy is assessed using the dividend payout ratio and dividend yield. The authors used the fixed effect model and the random effect model to fulfill the study’s objectives. Furthermore, the system-generalized method of moment estimation technique is used to test the robustness of the result. In addition, the authors perform reverse causality analysis and investigate the effect of financial constraints on the dividend policy–CSR relationship. Findings The authors find that dividend policy has a significant positive impact on CSR. The authors also find that dividend policy is significantly positively associated with components of CSR, i.e. donation, employee welfare and research and development. Furthermore, the authors find that the board governance mechanism strengthens this positive relationship between dividend policy and CSR. Practical implications The government and authorities must mandate or at least encourage enterprises to pay dividends as doing so not only keeps shareholders happy but also encourages firms to make CSR initiatives to balance stakeholders. Furthermore, the regulator should take steps to strengthen the board governance structure as it strengthens the positive dividend policy–CSR relationship. Originality/value Although little previous research has focused on the CSR-dividend policy link, the authors believe that this is the first study to look at the influence of dividend policy on CSR and the moderating impact of board governance mechanisms in an emerging country, namely, Pakistan.

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Effect of corporate social responsibility performance on dividend pay-out: Role of corporate governance quality

Cited by 5 publications

References 62 publications

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

Quantitative Analysis and Comparative Review of Dividend Policy Dynamics within the Banking Sector: Insights from Global and U.S. Financial Data and Existing Literature

Impact of Corporate Social Responsibility on Dividend Payout Mediated by Accounting Conservatism

Impact of dividend policy on corporate social responsibility: the role of board governance mechanism

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