Geopolitical risk and corporate payout policy
dc.contributor.author | Adra, S | |
dc.contributor.author | Gao, Y | |
dc.contributor.author | Huang, J | |
dc.contributor.author | Yuan, J | |
dc.date.accessioned | 2023-12-13T14:11:55Z | |
dc.date.issued | 2023-03-03 | |
dc.date.updated | 2023-12-13T13:21:43Z | |
dc.description.abstract | In this study, we examine the effects of geopolitical risk on corporate payout policy. Exploiting a news-based index of geopolitical risk, we find that firms adopt a more conservative payout policy by reducing share repurchases in response to greater geopolitical risk, whereas the effects of geopolitical risk on cash dividends are insignificant. Further analysis suggests that cash flow uncertainty and financial distress risk are two potential channels through which geopolitical risk affects corporate payout policy. We also show that the effects of geopolitical risk on share repurchase are more pronounced for firms with greater exposure to product market competition and those facing higher threats of financial distress. Overall, our study emphasizes the implications of geopolitical risk for corporate payout choice. | en_GB |
dc.identifier.citation | Vol. 87, article 102613 | en_GB |
dc.identifier.doi | https://doi.org/10.1016/j.irfa.2023.102613 | |
dc.identifier.uri | http://hdl.handle.net/10871/134788 | |
dc.language.iso | en | en_GB |
dc.publisher | Elsevier | en_GB |
dc.rights | © 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). | en_GB |
dc.subject | Geopolitical risk | en_GB |
dc.subject | Corporate payout policy | en_GB |
dc.subject | Share repurchase | en_GB |
dc.subject | Cash dividend | en_GB |
dc.title | Geopolitical risk and corporate payout policy | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2023-12-13T14:11:55Z | |
dc.identifier.issn | 1057-5219 | |
exeter.article-number | 102613 | |
dc.description | This is the final version. Available on open access from Elsevier via the DOI in this record. | en_GB |
dc.description | Data availability: Data will be made available on request. | en_GB |
dc.identifier.eissn | 1873-8079 | |
dc.identifier.journal | International Review of Financial Analysis | en_GB |
dc.rights.uri | https://creativecommons.org/licenses/by-nc-nd/4.0/ | en_GB |
dcterms.dateAccepted | 2023-02-28 | |
rioxxterms.version | VoR | en_GB |
rioxxterms.licenseref.startdate | 2023-03-03 | |
rioxxterms.type | Journal Article/Review | en_GB |
refterms.dateFCD | 2023-12-13T14:08:16Z | |
refterms.versionFCD | VoR | |
refterms.dateFOA | 2023-12-13T14:11:56Z | |
refterms.panel | C | en_GB |
refterms.dateFirstOnline | 2023-03-03 |
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Except where otherwise noted, this item's licence is described as © 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).