DETERMINANTS OF DIVIDEND STICKINESS: EMPIRICAL EVIDENCE

10.6291/AIAPM.202212_(11).0005

James Juichia Lin；Yi-Han Lin

Dividend Stickiness Behavior ； Signaling Hypothesis ； Ownership Structure ； Life Cycle Theory

Advances in Investment Analysis and Portfolio Management

11期（2022 / 12 / 01）

115 - 137

英文

In this study, we specify dividend stickiness behavior and relates it to extant dividend theories. We find that dividend stickiness is more pronounced for firms with higher information asymmetry. Meanwhile, dividend stickiness is positively (negatively) associated with institutional shareholders' ownership (ownership concentration index). Further, mature firms engage more in dividend stickiness behavior. Overall, our findings suggest that information asymmetry theory, ownership structure, and life-cycle determine a firm's propensity to avoid dividend cuts.

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