- Title Pages
- Acknowledgments
- Contributors
- 1 International Finance: An Overview
- 2 A Primer on Exchange Rate Behavior
- 3 Markets and International Interest Rate Parity
- 4 Corporate Risk Management in the Multinational Firm
- 5 Central Banks and Economic Policy after the Crisis: What Have We Learned?
- 6 International Financial Integration: Benefits, Costs, and Policy Challenges
- 7 Links between International Financial Markets and Volatility
- 8 Challenges in Financial Regulation
- 9 International Equity Markets: Risk and Return
- 10 International Corporate Debt Markets
- 11 Financing International Trade
- 12 Cross-Listing Behavior
- 13 International Regulatory Regimes
- 14 Asset Pricing in an International Setting
- 15 The Home Bias Puzzle in Equity Portfolios
- 16 Investing in Emerging and Developing Markets
- 17 International Investment Patterns
- 18 Integrated versus Segmented Capital Markets: Implications for Financial Decision-Making
- 19 Multinational Capital Budgeting: Valuing Cross-Border Investments
- 20 Multinational Restructuring
- 21 Corporate Management of Foreign Currency Risk: Conceptual Framework, Policies, and Strategies
- 22 Multinational Cost of Capital and Capital Structure
- 23 Dividend Policy across Countries
- 24 International Governance and Convergence
- 25 Business Bankruptcies across Countries and the Law
- 26 Alternative Financing Methods
- 27 Differences in Ownership Structures across Countries
- 28 Understanding Financial Market Failures
- Discussion Questions and Answers
- Index
Dividend Policy across Countries
Dividend Policy across Countries
- Chapter:
- (p.485) 23 Dividend Policy across Countries
- Source:
- International Finance
- Author(s):
STEPHEN P. FERRIS
SABHERWAL SANJIV
- Publisher:
- Oxford University Press
The payment of dividends by firms remains a quandary for finance scholars because of tax implications for value and the near substitutability of repurchases. A review of the literature on international dividend policy does not suggest an answer to this paradox, but it does provide evidence that supports several important conclusions. First, the evidence fails to support a dominant explanation for why firms pay dividends. Rather, the existing empirical work suggests that there are elements of numerous theories present in the global payment of dividends. Second, the literature shows that what are often presented as stylized facts about dividends are really U.S. results and fail to hold for other countries. Finally, the literature reveals the importance of factors beyond the economic and financial on the design of corporate dividend policies. Increasingly, the empirical evidence shows that cultural, legal, and behavioral factors exert important influences on managerial decisions about dividends.
Keywords: dividends, agency, catering, legal origins
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- Title Pages
- Acknowledgments
- Contributors
- 1 International Finance: An Overview
- 2 A Primer on Exchange Rate Behavior
- 3 Markets and International Interest Rate Parity
- 4 Corporate Risk Management in the Multinational Firm
- 5 Central Banks and Economic Policy after the Crisis: What Have We Learned?
- 6 International Financial Integration: Benefits, Costs, and Policy Challenges
- 7 Links between International Financial Markets and Volatility
- 8 Challenges in Financial Regulation
- 9 International Equity Markets: Risk and Return
- 10 International Corporate Debt Markets
- 11 Financing International Trade
- 12 Cross-Listing Behavior
- 13 International Regulatory Regimes
- 14 Asset Pricing in an International Setting
- 15 The Home Bias Puzzle in Equity Portfolios
- 16 Investing in Emerging and Developing Markets
- 17 International Investment Patterns
- 18 Integrated versus Segmented Capital Markets: Implications for Financial Decision-Making
- 19 Multinational Capital Budgeting: Valuing Cross-Border Investments
- 20 Multinational Restructuring
- 21 Corporate Management of Foreign Currency Risk: Conceptual Framework, Policies, and Strategies
- 22 Multinational Cost of Capital and Capital Structure
- 23 Dividend Policy across Countries
- 24 International Governance and Convergence
- 25 Business Bankruptcies across Countries and the Law
- 26 Alternative Financing Methods
- 27 Differences in Ownership Structures across Countries
- 28 Understanding Financial Market Failures
- Discussion Questions and Answers
- Index
