Dividend smoothing and firm valuation

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F22%3A00558897" target="_blank" >RIV/67985998:_____/22:00558897 - isvavai.cz</a>
Alternative codes found
RIV/00216208:11640/22:00568746
Result on the web
<a href="https://doi.org/10.1017/S0022109021000673" target="_blank" >https://doi.org/10.1017/S0022109021000673</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1017/S0022109021000673" target="_blank" >10.1017/S0022109021000673</a>

Result language
angličtina
Original language name
Dividend smoothing and firm valuation
Original language description
We examine the relationship between dividend smoothing and firm valuation across 21 countries using several empirical methods and smoothing measures. Our main results show that dividends are capitalized at significantly larger values for high-smoothing firms than for low-smoothing firms. We also find that dividend-smoothing premiums are higher in countries with weak shareholder protection – suggesting that smoothing serves as a substitute mechanism to reduce agency costs. Overall, our findings support the view that managers use dividend smoothing predominantly as a bonding mechanism to reduce agency costs (Leary and Michaely (2011)), and not as a rent extraction mechanism (Lambrecht and Myers (2012)).
Czech name
—
Czech description
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Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
—
OECD FORD branch
50202 - Applied Economics, Econometrics

Project
<a href="/en/project/GA16-20451S" target="_blank" >GA16-20451S: International Governance: Revisited</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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