Byrne, Julie and O'Connor, Thomas (2017) Creditor rights, culture and dividend payout policy. Journal of Multinational Financial Management, 39. pp. 60-77. ISSN 1042-444X

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Abstract

We study how creditor rights and culture interact with one another to influence corporatedividend payout policy. Where creditor rights are strong, creditors accept the status quo,which are large dividends in individualist and small dividends in collectivist traditions,respectively. Culture influences dividend payout where creditor rights are weak. In collec-tivist countries where group cohesion among corporate stakeholders results in perceivedlower agency costs of debt and equity, creditors place few if any restrictions on dividendpayout given weak creditor rights. In contrast, in individualist traditions, creditors continueto restrict dividend payouts under weak creditor rights. Our findings emphasize the impor-tance of accounting for the interactions between creditor rights and culture in determiningdividend policy.

Item Type:	Article
Keywords:	National culture; Creditor rights; Dividend policy; Corporate Finance and Governance; Payout Policy;
Academic Unit:	Faculty of Social Sciences > Economics, Finance and Accounting
Item ID:	11392
Identification Number:	https://doi.org/10.1016/j.mulfin.2016.12.002
Depositing User:	Thomas O'Connor
Date Deposited:	24 Oct 2019 16:00
Journal or Publication Title:	Journal of Multinational Financial Management
Publisher:	Elsevier
Refereed:	Yes
URI:	Publisher
Use Licence:	This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available here

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