Speaker: Tao Huang, Jiangxi University of Finance and Economics
Host: Yan Dong, Associate Professor,RIEM
Time: 13:55--15:50, Nov. 8, Friday
Venue: H513 Yide Hall, Liulin Campus
Abstract: We examine the impact of political uncertainty on firms’ payout policy. Using a large international sample across 35 countries over the period from year 1980 to 2009, we find that past dividend payers are more likely to terminate dividends and that non-payers are less likely to initiate dividends during periods of high political uncertainty. Furthermore, this impact can be attenuated by stable political systems. In addition to identifying this precautionary incentive, we also find that firms with lower market valuation or less liquidity are more likely to initiate dividends during periods of high political uncertainty, which is consistent with the catering motive of managers.
Profile: Dr. Tao Huang is a lecturer at Jiangxi University of Finance and Economics. He received his PhD in Physics at Heriot-Watt University. Dr. Li’s specialization lies in asset pricing, behavior finance, algorithmic trading. He has published numerous articles in peer-reviewed journals both in Finance and Physics.
