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Bonding, signaling theory and dividend policy: Evidence from multinational firms

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  • Imen Ghadhab

    (University of Tunis)

Abstract

This paper investigates the dynamics of cross-listing and dividend policy. Using a sample of 19,200 firm-year observations for the period 1990–2019, we find that cross-listed firms are less likely to distribute dividends, adopt more stable policy and pay more cash compared to their non-cross-listed peers. We also show that firms originated from poor legal environment have a stable policy and pay more dividend. Finally, we find that cross-listed firms with more dividend payment exhibit higher valuations.

Suggested Citation

  • Imen Ghadhab, 2023. "Bonding, signaling theory and dividend policy: Evidence from multinational firms," Journal of Asset Management, Palgrave Macmillan, vol. 24(1), pages 69-83, February.
    • Handle: RePEc:pal:assmgt:v:24:y:2023:i:1:d:10.1057_s41260-022-00289-7
    DOI: 10.1057/s41260-022-00289-7
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    More about this item

    Keywords

    Cross-listing; Dividend policy; Bonding;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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