What do we know about dividend smoothing in this millennium? Evidence from Asian Markets

Sabina Nowak , Urszula Mrzygłód , Magdalena Mosionek-Schweda , Jakub Kwiatkowski


We examined the smoothing pattern of dividends on publicly stock-listed companies in the so-called Asian Tigers – China, Indonesia, Korea, Malaysia, the Philippines, Taiwan and Thailand. Based on a panel of data comprising 702 companies from 2000 to 2015, we estimated the speed of dividend adjustment (SOA) using a generalized method of moments two-step estimator. Having implemented an improved procedure using a rolling regression, we obtained the SOA coefficient equal to 0.447, which confirmed a moderate level of dividend smoothing among the selected countries. Moreover, we examined the SOA’s drivers by employing a range of variables reflecting the companies’ and the countries’ characteristics. The most influential firm-level determinants of dividend smoothing in emerging Asian markets were payout ratio, retained earnings and level of risk proxied by the return on asset standard deviation. Additionally, we identified the relevance of the financial market sophistication and board efficacy as potential drivers of dividend smoothing.
Publication typeIn press (online first, early view)
Author Sabina Nowak (FM/DE)
Sabina Nowak,,
- Department of Econometrics
, Urszula Mrzygłód (FE/IIB)
Urszula Mrzygłód,,
- Institute of International Business
, Magdalena Mosionek-Schweda (FE/IIB)
Magdalena Mosionek-Schweda,,
- Institute of International Business
, Jakub Kwiatkowski (FE/DEEI)
Jakub Kwiatkowski,,
- Department of Economics of European Integration
Journal seriesEmerging Markets Finance and Trade, ISSN 1540-496X, e-ISSN 1558-0938, (N/A 40 pkt)
Issue year2020
Noonline first
Publication size in sheets0.30
Keywords in Englishpayout policy, dividend smoothing, emerging markets, Asian Tigers
ASJC Classification2000 General Economics, Econometrics and Finance; 2003 Finance
Languageen angielski
Score (nominal)40
Score sourcejournalList
ScoreMinisterial score = 40.0, 13-05-2020, ArticleFromJournal
Publication indicators WoS Citations = 0.000; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.684; WoS Impact Factor: 2017 = 0.828 (2) - 2017=0.750 (5)
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