IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v27y2020i4p335-339.html
   My bibliography  Save this article

Stock liquidity, agency cost, and dividend payouts

Author

Listed:
  • Yi Hu
  • Weiwei Huang
  • Zihao Chen

Abstract

From an agency theory perspective, we find the increase of stock liquidity will lead to more dividend payouts. There are two potential channels, the ‘outcome hypothesis’ (La Porta et al. 2000) and the ‘creditors substitute hypothesis’ (Brockman and Unlu 2009), through which stock liquidity could increase dividend payouts. We confirm that stock liquidity influences dividend payouts mainly through the latter.

Suggested Citation

  • Yi Hu & Weiwei Huang & Zihao Chen, 2020. "Stock liquidity, agency cost, and dividend payouts," Applied Economics Letters, Taylor & Francis Journals, vol. 27(4), pages 335-339, February.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:4:p:335-339
    DOI: 10.1080/13504851.2019.1616052
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2019.1616052
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2019.1616052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barros, Victor & Verga Matos, Pedro & Miranda Sarmento, Joaquim & Rino Vieira, Pedro, 2023. "High-tech firms: Dividend policy in a context of sustainability and technological change," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    2. Stereńczak, Szymon & Kubiak, Jarosław, 2022. "Dividend policy and stock liquidity: Lessons from Central and Eastern Europe," Research in International Business and Finance, Elsevier, vol. 62(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:27:y:2020:i:4:p:335-339. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.