Search results

1 – 2 of 2
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 17 April 2023

Monika Dahiya, Shveta Singh and Neeru Chaudhry

The study investigates the relationship between corporate social responsibility (CSR) and dividend policy in the context of Indian firms, as well as how regulatory interventions…

1114

Abstract

Purpose

The study investigates the relationship between corporate social responsibility (CSR) and dividend policy in the context of Indian firms, as well as how regulatory interventions in the form of mandated CSR can moderate this relationship.

Design/methodology/approach

A sample of the largest 500 companies listed on the National Stock Exchange from 2008 to 2019 is used in the study. The authors employ the system generalized method of moments since this estimation technique yields accurate and consistent findings in a dynamic panel data setting.

Findings

The authors find that CSR is positively associated with dividend payments. Increased incomes and lower financial constraints are the likely factors causing this relationship. Additional analysis suggests that the positive relationship is stronger for mature firms and for firms with higher information asymmetry. Financial reporting quality works in tandem with CSR to boost dividends. Regulatory interventions in the form of mandated CSR weaken the relationship. Finally, the speed of adjustment of dividends is relatively faster for socially responsible firms.

Practical implications

The positive association between CSR and dividends suggests that the interest of shareholders and other non-financial stakeholders can be reconciled. Additionally, businesses should attempt to strategically implement their CSR plans in accordance with the requirements of Section 135 of the Companies Act, 2013 to avoid any unfavourable moderating effects of the legislation. The results also show that CSR disclosures complement rather than serve as a substitute for financial disclosures.

Originality/value

The study is the first to evaluate the relationship between CSR and dividends in the context of India, which is a pioneer in passing legislation that mandates CSR for firms surpassing a threshold. The authors also identify financial constraints as a channel through which CSR affects dividends.

Details

Management Decision, vol. 61 no. 10
Type: Research Article
ISSN: 0025-1747

Keywords

Access Restricted. View access options
Article
Publication date: 12 May 2022

Emmanuel Asare, De-Graft Owusu-Manu, Joshua Ayarkwa, David John Edwards and I. Martek

The construction industry (CI) is a major contributor to the gross domestic product of most economies. Yet, the industry is characterized by poorly performing projects, plagued…

436

Abstract

Purpose

The construction industry (CI) is a major contributor to the gross domestic product of most economies. Yet, the industry is characterized by poorly performing projects, plagued with cost overruns, delays, with a relatively high-risk nature and marginal returns. Given that construction projects are financially dynamic, relying on highly fluctuating working capital and cash-flow requirements, there is an imperative need to understand the working capital management (WCM) of the CI. This study aims to review the extant literature on WCM in the CI to present a contemporary positional paper and engender a wider polemic debate on this crucial phenomenon.

Design/methodology/approach

A systematic literature review methodology is used, using Google Scholar as the literature database.

Findings

Despite the importance of this research theme, only 16 publications dedicated to the topic of WCM in the CI are identified. This is an important finding in itself and is indicative of hitherto scant research conducted. Other observations include the lack of experts examining the field, with no authors exploring the theme more than once. Subthemes of WCM are also scarce, with only the topic of the relationship between “WCM and profitability” been revisited and refined in literature; all other topics being cursory.

Originality/value

This study is among pioneering papers in developing economies that have taken stock of WCM in the CI. As a result, the conclusion of this paper is to call out the paucity of research in WCM and set a broad agenda for future research.

Details

Construction Innovation , vol. 23 no. 4
Type: Research Article
ISSN: 1471-4175

Keywords

1 – 2 of 2
Per page
102050