Corporate dividend smoothing: The role of cross-listing

B-Tier
Journal: Journal of Corporate Finance
Year: 2022
Volume: 72
Issue: C

Authors (4)

Balli, Faruk (Massey University) Agyemang, Abraham (not in RePEc) Gregory-Allen, Russell (not in RePEc) Ozer Balli, Hatice (Massey University)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

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.

Technical Details

RePEc Handle
repec:eee:corfin:v:72:y:2022:i:c:s092911992100273x
Journal Field
Finance
Author Count
4
Added to Database
2026-01-24