Dividend payout determinants for Australian Multinational and Domestic Corporations. (28th October 2015)

• Record Type: Journal Article
• Authors: Akhtar, Shumi
• Is Part Of: Accounting and finance. Volume 58:Number 1(2018)
• Page Start: 11
• Page End: 55
• Publication Date: 2015-10-28
• Subjects: Multinational -- Dividend policy -- Australian firms -- International risks; Accounting -- Periodicals; Finance -- Periodicals; 657.05
• DOI: 10.1111/acfi.12137
• Languages: English
• ISSNs: 0810-5391

Abstract

Abstract: I investigate the determinants of dividend payments for Australian Multinational Corporations (MCs) and Domestic Corporations (DCs). Six measures of dividend payout ratios are investigated, and five international factors are employed in addition to traditional factors. I find: MCs pay significantly less regular cash, special cash, total dividends and net dividends relative to DCs; the degree of foreign involvement is important in determining special cash and net dividend payments; MCs are more active than DCs in dividend increasing activities; and MCs are significantly less likely to be a dividend payer relative to DCs due to tax disadvantages coupled with unfavourable foreign risk exposures.