Corporate social responsibility and dividend policy.

Wai-Kong Cheung, May Hu, Jorg Schwiebert

Research output: Contribution to journalArticlepeer-review

75 Citations (Scopus)


This study outlines and tests two corporate social responsibility (CSR) views of dividends. The first view argues that firms are likely to pay fewer dividends because CSR activities lower the cost of equity, encouraging firms to invest or hoard cash rather than to pay dividends. The second view suggests that CSR activities are positive NPV projects that increases earnings and hence dividend payouts. The first (second) view predicts that firms with a stronger involvement in CSR activities should be associated with a lower (higher) dividend payouts. The finding supports the second view and is robust.

Original languageEnglish
Pages (from-to)787-816
Number of pages30
JournalAccounting and Finance
Issue number3
Publication statusPublished - Sept 2018


  • Corporate social responsibility
  • Dividends


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