Table 5.
The influence of behavioral foundations and business strategy on the dividend initiations and omissions.
| (1) | (2) | (3) | (4) | (5) | |
|---|---|---|---|---|---|
| Panel A: Dividend Initiations | |||||
| Intercept | −4.990 | −5.160 | −4.232 | −4.182 | −3.300 |
| (−0.01) | (−0.01) | (−0.01) | (−0.01) | (−0.01) | |
| Ambiguity | −1.185* | −1.031* | |||
| (−1.95) | (−1.78) | ||||
| Loss | −0.058 | −0.106 | |||
| (−0.31) | (−0.57) | ||||
| Risk | −0.017*** | −0.015** | |||
| (−2.60) | (−2.34) | ||||
| Strategy | −0.051* | −0.049* | |||
| (−1.82) | (−1.73) | ||||
| Size | 0.286*** | 0.297*** | 0.250*** | 0.297*** | 0.254*** |
| (3.73) | (3.87) | (3.20) | (3.89) | (3.23) | |
| Leverage | −2.455*** | −2.594*** | −2.413*** | −2.563*** | −2.290*** |
| (−3.54) | (−3.75) | (−3.46) | (−3.70) | (−3.26) | |
| bm | −0.044 | −0.131 | −0.030 | −0.160 | 0.060 |
| (−0.16) | (−0.46) | (−0.10) | (−0.57) | (0.21) | |
| Indpend | 0.110 | 0.094 | 0.111 | 0.057 | 0.094 |
| (0.16) | (0.14) | (0.16) | (0.08) | (0.14) | |
| Inst | −1.025 | −0.910 | −1.188* | −0.910 | −1.241* |
| (−1.54) | (−1.38) | (−1.77) | (−1.38) | (−1.84) | |
| FCF | 0.377 | 0.394 | 0.413 | 0.493 | 0.444 |
| (0.53) | (0.56) | (0.57) | (0.69) | (0.62) | |
| Ind | YES | YES | YES | YES | YES |
| Year | YES | YES | YES | YES | YES |
| Pseudo R2 | 7.62% | 7.50% | 7.65% | 7.57% | 7.81% |
| N | 4,614 | 4,614 | 4,614 | 4,614 | 4,614 |
| Panel B. Dividend omissions | |||||
| Intercept | −1.540 | −1.761 | −3.632 | −2.123 | −3.761 |
| (−0.10) | (−0.12) | (−0.27) | (−0.15) | (−0.24) | |
| Ambiguity | 0.912*** | 0.815** | |||
| (2.75) | (2.47) | ||||
| Loss | −0.301 | −0.334 | |||
| (−0.86) | (−0.91) | ||||
| Risk | 0.043*** | 0.041*** | |||
| (3.72) | (3.53) | ||||
| Strategy | 0.035 | 0.011 | |||
| (0.60) | (0.19) | ||||
| Size | −1.260*** | −1.289*** | −1.178*** | −1.320*** | −1.134*** |
| (−6.04) | (−6.18) | (−5.46) | (−6.27) | (−5.25) | |
| Leverage | 4.637*** | 4.807*** | 4.427*** | 4.707*** | 4.333*** |
| (3.74) | (3.92) | (3.57) | (3.82) | (3.46) | |
| bm | 1.544*** | 1.779*** | 1.566*** | 1.706*** | 1.456*** |
| (4.03) | (4.61) | (4.15) | (4.49) | (3.74) | |
| Indpend | −3.496*** | −3.189** | −2.936** | −3.194** | −3.128** |
| (−2.78) | (−2.55) | (−2.31) | (−2.56) | (−2.43) | |
| Inst | −0.124 | 0.237 | 0.221 | 0.235 | −0.135 |
| (−0.10) | (0.20) | (0.19) | (0.20) | (−0.11) | |
| FCF | −2.554** | −2.688** | −2.620** | −2.816** | −2.530* |
| (−2.03) | (−2.20) | (−2.07) | (−2.27) | (−1.91) | |
| Ind | YES | YES | YES | YES | YES |
| Year | YES | YES | YES | YES | YES |
| Pseudo R2 | 7.41% | 7.29% | 7.50% | 7.29% | 7.62% |
| N | 5,761 | 5,761 | 5,761 | 5,761 | 5,761 |
Panel A presents the results of the logistic regression in which the dependent variable equals one if the firm pays dividends at time t but did not in time t-1, and zero otherwise. Panel B reports the results of the logistic regression in which the dependent variable equals one if the firm does not pay dividends at time t but did in time t-1, and zero otherwise. t-value is presented in parentheses. Model (1) to (4) examine the effects of three behavioral variables and strategy scores separately. Model (5) incorporates all variables. All models include industry and year dummies. *, ** and *** represent the statistical significance at 10, 5 and 1%, respectively. *, ** and *** mean statistical significance at 10, 5 and 1%, respectively.