Access the full text.
Sign up today, get DeepDyve free for 14 days.
Journal of Financial Economics, 81
Review of Quantitative Finance and Accounting, 47
The European Journal of Finance, 17
Journal of Financial Economics, 118
Review of Financial Studies, 24
Review of International Business and Strategy, 26
Chinese Journal of Management Science
Accounting Horizons, 25
Journal of Financial Economics, 77
Managerial Finance, 39
Finance Research Letters, 20
International Economics, 145
The Journal of Finance, 67
Financial Management, 45
Journal of Asian Business and Economic Studies, 26
Finance Research Letters, 33
Asian Journal of Management, 9
Journal of Corporate Finance, 42
Journal of Financial Economics, 115
The Journal of Portfolio Management, 2
SSRN Electronic Journal
Journal of Public Affairs, 20
Applied Finance Letters, 9
Research in International Business and Finance, 47
International Journal of Managerial Finance, 15
The Review of Economic Studies, 70
African Journal of Economic and Management Studies), 11
M. Said, R. Galal, M. Sami (2019)
Inequality and income mobility in Egypt
Central Bank Review, 18
Development Policy Review, 37
Review of Accounting Studies, 16
Journal of Corporate Finance, 27
The Journal of Financial and Quantitative Analysis, 38
Empirical Economics
Central Bank Review, 20
The Review of Economic Studies, 58
Journal of Financial Reporting and Accounting, 13
The Quarterly Review of Economics and Finance, 76
Journal of Banking and Finance, 69
Cogent Economics and Finance, 7
The paper uses firm level data for the top listed firms in New York exchange stock over the period 2000–2017. The analysis is mainly based on 237 firms that already experienced losses at the end of the fiscal year. The study aims to use the properties of the dynamic panel data, specifically the methodology proposed by Arenllo and Bond (1991), to fulfill the objectives of the paper.Design/methodology/approachThis paper focuses on the dividend policy management of the firms when they experience a loss at the end of the fiscal year. The objective is to examine how such a policy management affects the sustainability of the firm (measured by the future sales and total factor productivity[TFP]) and the wealth of its shareholders (measured by the Stock Returns).FindingsThe results show that the distressed firms that distribute dividends at the end of the loss period are able to maintain sustainability and to reach more favorable wealth situation of their shareholders relative to the firms who abstain to pay; the dividend policy during periods of loss is still able to send positive signals about the firm in the market; and the dividend policy can be considered as a predictive indicator for a sustainable firm whose shareholders can also predict their capital gains.Originality/valueAgreed upon the literature that the firms during the period of crisis are likely to change their dividend policy, this study offers robust evidence that the dividend policy of distressed firms affects their sustainability (measured by sales and TFP) and the wealth status of their shareholders (measured by the Stock Returns).
Journal of Modelling in Management – Emerald Publishing
Published: Jul 20, 2021
Keywords: Policy; Productivity; Dividend policy; Sustainability; Distressed firms; Sales; Total factor productivity; Stock returns; D22; G35; L25
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.