Flavin, Thomas and O'Connor, Thomas
(2017)
Reputation building and the lifecycle model of dividends.
Pacific-Basin Finance Journal, 46.
pp. 177-190.
ISSN 0927-538X
Abstract
We analyze the relationship between corporate dividend policy and firm lifecycle in a low-disclosure
regime, where domestic firms have an incentive to use dividends to build capital market
reputation among external investors. We use a range of lifecycle indicators from the extant literature
and find that, as predicted by the lifecycle model, dividend payouts increase along the
lifecycle until peaking in the mature stage. Furthermore, dividends are positively related to
growth opportunities. In all lifecycle stages, firms with relatively larger growth opportunities pay
relatively larger dividends. We find that firms in low-disclosure regimes, engage in reputationbuilding
behaviour, not just in the early stages of their lifecycle but also in the mature stage.
| Item Type: |
Article
|
| Keywords: |
Dividend payout;
Lifecycle;
Reputation building;
Retained equity;
Growth opportunities; |
| Academic Unit: |
Faculty of Social Sciences > Economics, Finance and Accounting |
| Item ID: |
11395 |
| Identification Number: |
https://doi.org/10.1016/j.pacfin.2017.09.006 |
| Depositing User: |
Thomas O'Connor
|
| Date Deposited: |
24 Oct 2019 16:52 |
| Journal or Publication Title: |
Pacific-Basin Finance Journal |
| Refereed: |
Yes |
| URI: |
|
| 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 |
Repository Staff Only(login required)
 |
Item control page |
Downloads per month over past year
Origin of downloads
Altmetric
Altmetric