High-tech firms: Dividend policy in a context of sustainability and technological change

Barros, Victor; Matos, Pedro; Sarmento, Joaquim Miranda; Vieira, Pedro Rino

doi:10.1016/j.techfore.2023.122434

Cited by 25 publications

(15 citation statements)

References 108 publications

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“…Using a data set of technology firms operating in the United States, Barros et al (2023) found a positive relationship between improved ESG scores and increased dividend distribution probabilities, as well as a higher consistency in dividend amounts and enhanced implied shareholder returns through dividend yield. The findings revealed that the intensity of research and development (R&D) constrains dividend policies.…”

Section: Connection Between Environmental Social and Governance And D...mentioning

confidence: 97%

“…Several studies have investigated the relationship between ESG and corporate dividend choices in various nations. Nevertheless, the results are inconclusive because although most research has shown a positive link between ESG and dividend payout in different situations (Cheung et al, 2016;Dewasiri and Abeysekera, 2020;Ellili, 2022;Vasconcelos et al, 2022;Barros et al, 2023;Bilyay-Erdogan et al, 2023;Lakhal et al, 2023), some studies have also indicated a negative association (Niccolo et al, 2020;Saeed and Zamir, 2021).…”

Section: Connection Between Environmental Social and Governance And D...mentioning

confidence: 99%

“…Also, an active investor protection environment obliges firms to increase transparency in their information disclosure (Bushman et al, 2004), thereby improving their ESG disclosure. The dividend decision policies of companies are believed to be tangibly influenced by the level of their ESG practices (Cheung et al, 2016;Barros et al, 2023;Bilyay-Erdogan et al, 2023), which in turn are influenced by the regulatory enforcement and investor protection environment of the nation. Therefore, the interrelationships between a firm's ESG, dividend decision and a country's institutional characteristics highlight a crucial moderating role that country-level investor protection legislation and regulatory enforcement mechanisms play in shaping corporate dividend payout strategies.…”

Section: Introductionmentioning

confidence: 99%

“…The dividend decision policies of companies are believed to be tangibly influenced by the level of their ESG practices (Cheung et al. , 2016; Barros et al. , 2023; Bilyay-Erdogan et al.…”

Section: Introductionmentioning

confidence: 99%

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Unveiling the ESG-dividend nexus: the moderating role of investor protection and regulatory enforcement

Dua,

Sharma

2024

JIBR

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Purpose The mounting focus on environmental, social and governance (ESG) factors in business has sparked substantial curiosity in understanding the nexus between ESG and the companies’ strategic decisions. This study aims to investigate the influence of firms’ ESG disclosure scores on their dividend payout. Furthermore, it examines the nuanced dynamics of this relationship by exploring the moderating role of the country’s investor protection regulations and regulatory enforcement. Design/methodology/approach This study uses pooled ordinary least square regression with year, industry and country effects. It analyzes a balanced panel data set of 192 non-financial firms drawn from the primary equity indices of BRICS nations. This study examined the data of six years spanning 2015–2020. Findings The findings discover a significantly positive relationship between ESG scores and dividend payout ratio, conveying that firms with higher ESG scores allocate more of their profits as dividends. Furthermore, the finding reveals that country-level robust investor protection and effective regulatory enforcement mechanisms undermine the positive association between ESG ratings and payouts of dividends, suggesting that the ESG disclosure of firms operating in a setting characterized by enhanced investor safeguards and stricter regulatory oversight will exert less influence on their dividend decisions. Originality/value To the best of the authors’ knowledge, this is the first study to concentrate on the ESG–dividend nexus in the BRICS countries. Furthermore, this study used each country’s investor protection index and regulatory enforcement scores to comprehend the influence of country-level legal frameworks in shaping the relationship between ESG and dividend decisions, thus adding value to the existing literature on corporate sustainability.

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Section: Connection Between Environmental Social and Governance And D...mentioning

confidence: 97%

Section: Connection Between Environmental Social and Governance And D...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…The dividend decision policies of companies are believed to be tangibly influenced by the level of their ESG practices (Cheung et al. , 2016; Barros et al. , 2023; Bilyay-Erdogan et al.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Unveiling the ESG-dividend nexus: the moderating role of investor protection and regulatory enforcement

Dua,

Sharma

2024

JIBR

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“…References RDE and Digitalization [1], [2], [3] RDE in the Private Sector [4] , [5], [6], [7], [8], [9], [10], [11], [12] , [13] , [14] , [15], [16]…”

Section: Literature Review By Main Theme Main Themementioning

confidence: 99%

The Impact of Research and Development Expenditures on ESG Model in the Global Economy

Costantiello¹,

Leogrande²

2023

Preprint

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We estimate the value of Research and Development Expenditures as a percentage of GDP-RDE in the context of Environmental, Social and Governance-ESG model. We use the ESG World Bank database. We analyze data from193 countries in the period 2011-2020. We apply a set of econometric techniques i.e. Pooled Ordinary Least Squares-OLS, Panel Data with Random Effects, Panel Data with Fixed Effects, Weighted Least Squares-WLS. We found that the level of RDE is positively associated, among others, to “Nitrous Oxide Emissions” and “Scientific and Technical Journal Articles”, and negatively associated, among others to “Heat Index 35”, “Maximum 5-day Rainfall”. Furthermore, we perform a cluster analysis with the application of the k-Means algorithm optimized with the Elbow Method. The results show the presence of four clusters. Finally, we confront eight different machine-learning algorithms to predict the future value of RDE. We find that Linear Regression is the best predictive algorithms. RDE is expected to growth on average of 0.07% for the analysed countries.

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ESG ratings and green innovation: A U‐shaped journey towards sustainable development

Yang,

Zhu,

Albitar

2024

Bus Strat Env

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This study examines the relationship between corporate ESG ratings and green innovation based on data from Chinese A‐share listed companies for the period between 2011 and 2022. The findings suggest a “U”‐ shaped relationship between ESG ratings and green innovation. Companies with lower ESG ratings (referred to as “bad” companies) tend to focus on improving their corporate governance and operational conditions, often at the expense of green innovation. However, as companies improve their ESG ratings, they increasingly view green innovation as a key growth area. This relationship is particularly evident in companies with low profitability and high operational risks. Additionally, we explore the impact of corporate ESG ratings on different types of green patents. The study finds that “bad” companies can mitigate the negative impact on green innovation through collaborative efforts, while non‐inventive green innovations, they benefit from independent research and development. Furthermore, the study examines the role of government subsidies and executive compensation in influencing this relationship. The results show that government subsidies can both positively and negatively affect green innovation, depending on the company's operational status and ESG rating. The results provide valuable insights for companies, investors, and policymakers regarding the significant role of ESG scores in promoting green innovation and suggest strategies to enhance corporate sustainability performance.

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High-tech firms: Dividend policy in a context of sustainability and technological change

Cited by 25 publications

References 108 publications

Unveiling the ESG-dividend nexus: the moderating role of investor protection and regulatory enforcement

Unveiling the ESG-dividend nexus: the moderating role of investor protection and regulatory enforcement

The Impact of Research and Development Expenditures on ESG Model in the Global Economy

ESG ratings and green innovation: A U‐shaped journey towards sustainable development

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