Why Do Socially Responsible Firms Pay More Dividends

摘要: Using a sample of 22,839 US firm-year observations over the period 1991-2012, we find that high CSR firms pay more dividends than low firms. This is consistent with our expectation socially responsible may use dividend policy to manage agency problems related overinvestment in CSR. The analysis individual components provides strong support for this main finding: five six dimensions used are also associated payout, namely, corporate governance, community, diversity, employee relations, and environment. Furthermore, by analyzing stability irresponsible adjust quicker firms: payout stable Additional results show involved two controversial activities – military alcohol payouts, which likely be due cost external funding these as highlighted Goss Roberts (2011). Our findings robust alternative assumptions model specifications, measures additional control variables, several approaches address endogeneity selection bias issues.