University of Twente Student Theses
The influence of national culture in Europe on cash dividend payout
Bennink, N.T. (2018) The influence of national culture in Europe on cash dividend payout.
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| Abstract: | In this paper we investigate the relationship between culture and cash dividend payout. We utilize two dimension of national culture from Hofstede’s framework as proxies for culture to be able to perform a regression analysis. We propose that culture provides additional explanatory power in determining variations in cash dividend payout. Our results indicate a negative relationship between the cultural dimension uncertainty avoidance and dividend payout. However, this result was not robust to the use of another measure for cash dividend payout. Additionally, we find a positive relationship between the cultural dimension of collectivism vs. individualism and cash dividend payout. To clarify, a higher score for individuality resulted in higher expected cash dividend payout. Interestingly, previous literature and empirical evidence pointed to the inverse direction for this relationship. Finally, our results support our proposition that culture can help explain variations in cash dividend payout. Although, its additional explanatory power is rather low, it is statistically significant. |
| Item Type: | Essay (Bachelor) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 02 science and culture in general, 85 business administration, organizational science |
| Programme: | International Business Administration BSc (50952) |
| Link to this item: | https://purl.utwente.nl/essays/75417 |
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