Does investor protection affect corporate dividend policy? Evidence from Asian markets

Athari, Seyed Alireza

doi:10.1111/boer.12310

Cited by 8 publications

(3 citation statements)

References 49 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Alzahrani and Lasfer (2012) explore the impact of investor protection and taxation on the pay-out policy of listed firms in 24 organisation for economic co-operation and development (OECD) member countries and find that firms in high investor protection countries pay higher dividends, but the distribution of pay-out varies across different tax systems. Athari (2022) investigates the nexus between investor protection and dividend policy for 517 listed nonfinancial firms operating in Asian countries between the period 2008 and 2017 and reveals that stronger investor protection is associated with higher dividend pay-outs.…”

Section: Moderating Role Of Investor Protectionmentioning

confidence: 99%

R&D intensity and firms dividend policy: evidence from BRICS countries

Hasan

Shafique

Das

et al. 2022

JAAR

View full text Add to dashboard Cite

PurposeGiven the importance of both research and development (R&D) investments and dividend policy in the growth of firms, this paper examines the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments in the firms from Brazil, Russia, India, China and South Africa (BRICS countries).Design/methodology/approachThis empirical study uses a sample of 22,073 firm year observations from the BRICS countries over a period of 2008–2020 and employs both ordinary least squared (OLS) and system generalized method of moments (GMM) estimation methods. The GMM estimation controls for unobservable heterogeneity and endogeneity and reduces estimation bias.FindingsThe findings indicate that although R&D intensity is negatively related with the cash dividend payments, with the interaction of investor protection and other country-level mechanisms the relationship between R&D intensity and dividend payments becomes positive. The results further show that investor protection has stronger impact on the relationship between R&D intensity and firm cash dividend payments than other selected country-level governance factors.Practical implicationsThe research findings should encourage the policy makers in BRICS countries to strengthen investor protection and enhance quality of their institutions to make a right balance between retaining their growth potential and maintaining the value of the firms.Originality/valueThis is the first study to provide evidence of the moderating effects of investor protection and other country-level governance mechanisms on the relationship between R&D investments and dividend payments using the data from BRICS countries.

show abstract

Section: Moderating Role Of Investor Protectionmentioning

confidence: 99%

R&D intensity and firms dividend policy: evidence from BRICS countries

Hasan

Shafique

Das

et al. 2022

JAAR

View full text Add to dashboard Cite

show abstract

“…Third, this study addresses how the country-specific economic, political, and financial risks impact the banking sectors’ NPLs in the BRICS countries that are exposed to the financial, economic, and political instabilities mainly after the global financial crisis (2008–2009). Fourth, as in previous studies (Athari 2021a , b , 2022a ; Irani et al 2022 ), we adopt a composite index of the International Country Risk Guide (ICRG) as a comprehensive and novel proxy for determining a country’s vulnerability. Based on previous studies, the ICRG index is inclusive and accurate and can be used to measure countries’ vulnerability to political, financial, and economic risks.…”

Section: Introductionmentioning

confidence: 99%

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

Saliba

Farmanesh²,

Athari

2023

Financ Innov

Self Cite

View full text Add to dashboard Cite

This study aims to fill the gap in the literature by specifically investigating the impact of country risk on the credit risk of the banking sectors operating in Brazil, Russia, India, China, and South Africa (BRICS), emerging countries. More specifically, we explore whether the country-specific risks, namely financial, economic, and political risks significantly impact the BRICS banking sectors’ non-performing loans and also probe which risk has the most outstanding effect on credit risk. To do so, we perform panel data analysis using the quantile estimation approach covering the period 2004–2020. The empirical results reveal that the country risk significantly leads to increasing the banking sector’s credit risk and this effect is prominent in the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.105, Q.50 = − 0.131, Q.75 = − 0.153, Q.95 = − 0.175). Furthermore, the results underscore that an emerging country’s political, economic, and financial instabilities are strongly associated with increasing the banking sector’s credit risk and a rise in political risk in particular has the most positive prominent impact on the banking sector of countries with a higher degree of non-performing loans (Q.25 = − 0.122, Q.50 = − 0.141, Q.75 = − 0.163, Q.95 = − 0.172). Moreover, the results suggest that, in addition to the banking sector-specific determinants, credit risk is significantly impacted by the financial market development, lending interest rate, and global risk. The results are robust and have significant policy suggestions for many policymakers, bank executives, researchers, and analysts.

show abstract

“…In particular, we use a unique measurement by the International Country Risk Guide (ICRG) for determining a country's vulnerability to FRI, ERI, and PRI. Based on prior studies [38][39][40], the ICRG index is comprehensive and precise for gauging countries' exposure to FRI, ERI, and PRI. Furthermore, despite the previous work by [27], which only tested the interaction effect of country governance and macroeconomic factors, this study significantly contributes by probing the interaction impact of country governance with country-specific FRI, ERI, and PRI to explore whether country governance has a moderator role in alleviating the adverse impact of country-specific risks on CR.…”

Section: Introductionmentioning

confidence: 99%

The Role of Country Governance in Achieving the Banking Sector’s Sustainability in Vulnerable Environments: New Insight from Emerging Economies

et al. 2023

Self Cite

View full text Add to dashboard Cite

Extant literature suggests that the banking sector’s sustainability is achievable by minimizing the risk factors, in particular, credit risk (CR). Despite prior studies, there are fewer attempts to considerably probe the role of country governance settings in managing CR and ultimately achieving sustainability. Therefore, this study aims to test this nexus for the banking sector operating in BRICS developing economies. Specifically, this research attempts to explore whether country governance has a moderator role between CR and the exposure of environments to risk factors. To achieve these objectives, we conduct panel data analysis using the quantile (QR) and fixed effects (FE) estimation methods. The results show that increasing liquidity, profitability, capital requirements, and income diversification lead to decreasing CR, whereas increasing inefficiency causes an increase in CR. In addition, the results reveal that a country’s increasing vulnerability to a specific financial risk index (FRI), economic risk index (ERI), and political risk index (PRI); developing capital markets; increasing lending interest rates; and weakening country governance quality is significantly linked to increasing CR. Remarkably, the results underscore that country governance has a significant moderator role, and by enhancing the quality of country governance, the impact of country-specific FRI, ERI, and PRI on CR could be attenuated.

show abstract

Does investor protection affect corporate dividend policy? Evidence from Asian markets

Cited by 8 publications

References 49 publications

R&D intensity and firms dividend policy: evidence from BRICS countries

R&D intensity and firms dividend policy: evidence from BRICS countries

Does country risk impact the banking sectors’ non-performing loans? Evidence from BRICS emerging economies

The Role of Country Governance in Achieving the Banking Sector’s Sustainability in Vulnerable Environments: New Insight from Emerging Economies

Contact Info

Product

Resources

About