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Keywords = imputation tax system

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30 pages, 525 KiB  
Article
Navigating Dividend Decisions: The Impact of Outsider CEOs in Imputation Tax Environments
by Ariful Hoque, Md Rayhan Islam and Shahadat Hossain
Risks 2024, 12(11), 182; https://doi.org/10.3390/risks12110182 - 19 Nov 2024
Viewed by 1076
Abstract
This study examines the influence of outsider CEOs on corporate dividend policies, specifically within the framework of an imputation tax environment, like in Australia. The study analyses 9826 firm-year observations from Australian firms listed on the ASX from 2012 to 2021. The study [...] Read more.
This study examines the influence of outsider CEOs on corporate dividend policies, specifically within the framework of an imputation tax environment, like in Australia. The study analyses 9826 firm-year observations from Australian firms listed on the ASX from 2012 to 2021. The study reveals that outsider CEOs tend to distribute lower dividend payouts; a trend observed even after robustness tests. Methodologically, the study addresses potential endogeneity issues through sophisticated methods like propensity score matching, difference-in-difference approach, and two-stage system generalized method of moments. The findings indicate that firms led by outsider CEOs, particularly those with specialized industry knowledge, are more inclined to invest undistributed profits in capital expenditure projects, reflecting an investment-oriented strategy. This research contributes significantly to understanding the strategic decision-making of outsider CEOs and their impact on dividend policies in specific tax environments. Full article
14 pages, 278 KiB  
Article
Dividend Policy and Institutional Holdings: Evidence from Australia
by Thao Nguyen and Hui Li
Int. J. Financial Stud. 2020, 8(1), 12; https://doi.org/10.3390/ijfs8010012 - 3 Mar 2020
Cited by 5 | Viewed by 4759
Abstract
This paper investigates the relationship between dividend payout and institutional ownership for all Australian listed firms in the period between 2001 and 2015. In our univariate tests, we find that institutional investors, in general, prefer dividend-paying firms more than non-paying firms, and for [...] Read more.
This paper investigates the relationship between dividend payout and institutional ownership for all Australian listed firms in the period between 2001 and 2015. In our univariate tests, we find that institutional investors, in general, prefer dividend-paying firms more than non-paying firms, and for the dividend-paying firms in our sample, institutional investors hold more shares in the firms who pay higher dividends. We further explore the causality between dividend payout and institutional ownership in our multivariate tests with our panel data. The results show an insignificant effect of institutional ownership (dividend payout) on the future dividend payout (institutional ownership) while controlling for firms’ fundamentals, that a higher dividend yield does not attract more institutional investors and that there is no catering to Australian institutional investors. Full article
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