Corporate dividend smoothing: The role of cross-listing


Balli F. Agyemang A. Gregory-Allen R. Ozer Balli H.
February 2022Elsevier B.V.

Journal of Corporate Finance
2022#72

This paper examines how, and to what extent, cross-listing impacts corporate dividend smoothing. We report significantly increased dividend smoothing, with idiosyncratic sectoral responses, after cross-listing. Furthermore, we show that sectoral competition and local market development explain the extent of dividend smoothing after cross-listing. To study the dynamics in dividend smoothing channels after cross-listing, we adopt a variance decomposition approach. We find substantial variation in the use of debt and investment channels to absorb net income shocks, keeping dividends smooth after cross-listing. Our findings suggest that, with increased access to a larger pool of capital in the U.S., cross-listed firms are motivated to keep dividends stable through debt and investment decisions after cross-listing.

Cross-listing , Dividend payout , Dividend smoothing , Lintners partial adjustment model , Speed of adjustment

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School of Economics and Finance, Massey University, Auckland, New Zealand
Al Farabi Kazakh National University, Almaty, Kazakhstan

School of Economics and Finance
Al Farabi Kazakh National University

10 лет помогаем публиковать статьи Международный издатель

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