Business strategy, cash holdings, and dividend payouts

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dc.citation.issue4
dc.citation.volume63
dc.contributor.authorHouqe MN
dc.contributor.authorMonem RM
dc.contributor.authorvan Zijl T
dc.date.accessioned2024-06-12T01:12:07Z
dc.date.available2024-06-12T01:12:07Z
dc.date.issued2023-12
dc.description.abstractBusiness strategy's impact on firm cash holdings and dividend payouts has largely remained unexplored. We identify a fundamental and direct link between a firm's business strategy and its cash holdings and dividend payouts. Analysing two large samples of data on US firms over the period 1992–2017, we find strong evidence that prospectors (defenders) are likely to hold more (less) cash and pay less (more) dividends than other firms. Further analysis suggests that prospectors pay dividends less frequently than do defenders. The results are robust to a battery of robustness checks and additional analysis. Overall, the results suggest that identifying a firm's business strategy significantly helps to understand a firm's cash holdings and dividend payout decisions.
dc.description.confidentialfalse
dc.edition.editionDecember 2023
dc.format.pagination3999-4035
dc.identifier.citationHouqe MN, Monem RM, van Zijl T. (2023). Business strategy, cash holdings, and dividend payouts. Accounting and Finance. 63. 4. (pp. 3999-4035).
dc.identifier.doi10.1111/acfi.13082
dc.identifier.eissn1467-629X
dc.identifier.elements-typejournal-article
dc.identifier.issn0810-5391
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/69797
dc.languageEnglish
dc.publisherJohn Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand.
dc.publisher.urihttps://onlinelibrary.wiley.com/doi/10.1111/acfi.13082
dc.relation.isPartOfAccounting and Finance
dc.subjectbusiness strategy
dc.subjectcash holdings
dc.subjectdefenders
dc.subjectdividend payout
dc.subjectprospectors
dc.titleBusiness strategy, cash holdings, and dividend payouts
dc.typeJournal article
pubs.elements-id460810
pubs.organisational-groupOther
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