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Dividend payout determinants for Australian Multinational and Domestic Corporations
Author(s) -
Akhtar Shumi
Publication year - 2018
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12137
Subject(s) - dividend , dividend payout ratio , multinational corporation , business , monetary economics , payment , dividend policy , financial system , economics , finance
I investigate the determinants of dividend payments for Australian Multinational Corporations ( MC s) and Domestic Corporations ( DC s). Six measures of dividend payout ratios are investigated, and five international factors are employed in addition to traditional factors. I find: MC s pay significantly less regular cash, special cash, total dividends and net dividends relative to DC s; the degree of foreign involvement is important in determining special cash and net dividend payments; MC s are more active than DC s in dividend increasing activities; and MC s are significantly less likely to be a dividend payer relative to DC s due to tax disadvantages coupled with unfavourable foreign risk exposures.