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Dividend policies across multinational and domestic corporations – an international study
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.12179
Subject(s) - multinational corporation , dividend , dividend payout ratio , business , monetary economics , economics , dividend policy , finance
This study examines whether the determinants of dividend payout ratios between Multinational ( MC s) and Domestic corporations ( DC s) vary across Australia, U.S., Japan, U.K. and Malaysia. Results show: (i) Australian, UK and Malaysian MC s pay significantly less dividends than their Domestic counterparts; however, the opposite holds for the U.S. firms; (ii) the factors that significantly explain the difference between DC s’ and MC s’ payout ratios vary across countries; (iii) firms operating in an imputation tax system and in a common law environment pay comparatively higher dividends relative to firms operating in a classical tax system and civil law regime.