Journal of Corporate Finance Vol. 72 2022
Corporate dividend smoothing: The role of cross-listing
Abstract
This paper examines how, and to what extent, cross-listing impacts corporate dividend smoothing. We report significantly increased dividend smoothing, with idiosyncratic sectoral responses, after cross-listing. Furthermore, we show that sectoral competition and local market development explain the extent of dividend smoothing after cross-listing. To study the dynamics in dividend smoothing channels after cross-listing, we adopt a variance decomposition approach. We find substantial variation in the use of debt and investment channels to absorb net income shocks, keeping dividends smooth after cross-listing. Our findings suggest that, with increased access to a larger pool of capital in the U.S., cross-listed firms are motivated to keep dividends stable through debt and investment decisions after cross-listing.
- DOI
- 10.1016/j.jcorpfin.2021.102151
- Volume
- 72
- Pages
- 102151
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref