ARTÍCULO
TITULO

The Shift of a Dividend Policy and a Leverage Policy during the 2008 Financial Crisis

Kwangsoo Lim    

Resumen

This paper investigates how firms shifted their dividend policies and leverage policies in response to the economic shock caused by the 2008 financial crisis. The sample countries are United States, Great Britain, France, Germany, Australia, Japan, China, and Korea. The empirical relationship of firms? dividend policies with their capital structures and earnings was likely to undergo a major change around the 2008 financial crisis, as firms adjusted their capital structures and dividend policies in response to the extreme credit crunch caused by the financial crisis. The extent and the speed that firms deleverage themselves and reduce their dividends were likely to be influenced by countries? cultural and social norms. This paper finds a significant reduction in dividends across sample countries except Great Britain and France after the 2008 crisis. This finding supports the free cash flow theory that dividends are paid to dissipate free cash flow to address agency conflicts between managers and shareholders. This paper finds a higher correlation between dividends and leverages before the 2008 crisis, and that it strengthened after the crisis except Great Britain and Korea. This finding is consistent more with the pecking order theory than with the trade-off theory of leverage.

Palabras claves

 Artículos similares

       
 
Hossein Nezakati,Meghdad Abbasian Fereidouni,Azmawani Abd Rahman     Pág. 76 - 79
Companies self-regulating were mostly for improving their reputation and public image rather than achieving to sustainability goals and this let to shift to co-regulating approach. In co-regulation practices, however, NGOs initially played a vital role t... ver más

 
Radman Selmic     Pág. Finance an - 61
This article investigates the role of the European Central Bank (ECB) in transferring financial and moral responsibility for the Eurozone crisis from the private to the public sector. Focusing on Greece, I argue that the ECB constructed the morality of t... ver más

 
Oleg Nikolayevich Salmanov,Victor Makarovich Zaernjuk,Olga Alekseevna Lopatina,Irina Petrovna Drachena,Evgeniya Viktorovna Vikulina     Pág. 273 - 282
Careful identification of the transmission channels of monetary policy is an important step in the global assessment of the major institutional changes. Research in this area should be constantly updated because of the strong structural dynamics. Th... ver más

 
Sukidin Sukidin,Pudjo Suharso  10.21831/economia.v11i1.7754     Pág. 47 - 55
Abstrak    : Model Analytical Network Process (ANP) dalam Pengembangan Pariwisata di Jember. Penelitian ini mengkaji kebijakan pengembangan pariwisata di Jember, terutama kebijakan pengembangan agrowisata perkebunan kopi dengan menggunakan... ver más
Revista: Jurnal Economia

 
Abdul Bakhirnudin    
Abstrak ___________________________________________________________________ Kawasan Banglor merupakan salah satu Kawasan di Provinsi Jawa Tengah yang memiliki tingkat pertumbuhan yang paling rendah dan terletak jauh lebih rendah dibandingkan dengan kawas... ver más