TY - JOUR
AU1 - Gizelle F. Perretti
AU2 - Marcus T. Allen
AU3 - H. Shelton Weeks
AB - Purpose – Cross‐listed firms may face unique incentives for establishing dividend policies in comparison to US firms. This study aims to test the implications of the lifecycle and signaling theories of dividend policy in the context of non‐US firms cross‐listed on US stock exchanges via American depository receipts (ADRs). Design/methodology/approach – ADRs are classified according to the firms' dividend paying histories as regular payers, non‐payers, former payers, new payers and switchers. Multinomial logit regressions measure the likelihood of dividend payers to pay dividends, as well as the possibility of a dividend amount increase, decrease, or no change, based upon previously identified determinants of dividend payments and a measure of economic conditions in the home country. Findings – The results indicate that firm size, growth opportunities, and the mix of earned and contributed capital partially explain observed dividend policies for ADR firms. Multinomial logit regressions reveal profitability and home‐country macro‐economic conditions significantly affect ADR firms' decisions to change their dividend policies. Originality/value – The findings suggest macro‐economic conditions affect dividend payment changes among ADR firms. The results also imply that the lifecycle and catering theories may help explain dividend changes among ADR firms.
TI - Determinants of dividend policies for ADR firms
JF - Managerial Finance
DO - 10.1108/MF-04-2013-0075
DA - 2013-10-11
UR - https://www.deepdyve.com/lp/emerald-publishing/determinants-of-dividend-policies-for-adr-firms-9rYdhQ0GIu
SP - 1155
EP - 1168
VL - 39
IS - 12
DP - DeepDyve
ER -