[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i12p564-d1545432.html
   My bibliography  Save this article

Dynamics of Dividend Payout in Korean Corporations: A Comprehensive Panel Analysis Across Economic Cycles

Author

Listed:
  • SungSup Brian Choi

    (Department of Business Management, SUNY (State University of New York) Korea, 119-2 Songdo Moonhwa-Ro, Inchon 21985, Republic of Korea)

  • Kudzai Sauka

    (Faculty of Business and Economics, Amsterdam University of Applied Sciences, Postbus 814, 1000 AV Amsterdam, The Netherlands)

Abstract
This research conducts a meticulous examination of the determinants influencing dividend payout dynamics among firms listed on the Korean Stock Exchange (KSE) from 1995 to 2021, a period characterized by profound economic fluctuations. By leveraging a dynamic panel data model and the Generalized Method of Moments (GMM) for estimation, the study addresses endogeneity concerns while exploring the effects of firm-specific and macroeconomic variables on dividend yields. The investigation delineates three distinct economic phases: normal conditions, financial crises, and the aggregate study period, facilitating a granular understanding of firms’ dividend payout adaptability under varying economic landscapes. Empirical findings underscore the persistence of dividend payments, revealing a variable adjustment speed toward target dividend yields contingent upon the economic context, with an expedited adjustment observed during crises. Crucially, firm profitability emerges as a consistent determinant of dividend yields across all examined periods, whereas the influence of macroeconomic variables is notably more pronounced during periods of economic normalcy. This research elucidates the complex interplay between internal corporate strategies and external economic pressures in shaping dividend policies, thereby enriching the discourse on dividend payout behavior in the context of Korea’s economic evolution from an emerging to a developed market.

Suggested Citation

  • SungSup Brian Choi & Kudzai Sauka, 2024. "Dynamics of Dividend Payout in Korean Corporations: A Comprehensive Panel Analysis Across Economic Cycles," JRFM, MDPI, vol. 17(12), pages 1-13, December.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:564-:d:1545432
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/12/564/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/12/564/
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:564-:d:1545432. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.