Financial constraints and the sustainability of dividend payout policy

Greta Falavigna; Roberto Ippoliti

doi:10.3390/su13116334

Financial constraints and the sustainability of dividend payout policy

Greta Falavigna
, Roberto Ippoliti

Research output: Contribution to journal › Article › peer-review

Abstract

This article investigates the relation between dividend payout policy and financial constraints, focusing on the Italian SMEs between 2015 and 2019 and adopting credit ratings as a measure of access to external financial resources. According to our findings, there is a positive relation between firm solvency and the payment of dividends, suggesting that, when companies’ financial constraints are higher, we can expect lower odds that they will pay out dividends. Nevertheless, there is also evidence that younger SMEs are interested in signaling their expected profitability to attract future investors and support access to the capital market.

Original language	English
Article number	6334
Journal	Sustainability
Volume	13
Issue number	11
DOIs	https://doi.org/10.3390/su13116334
Publication status	Published - 1 Jun 2021
Externally published	Yes

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Credit ratings
Financial constraints
Manufacturing industry
Payout policy
SMEs

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10.3390/su13116334

Cite this

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KW - Manufacturing industry

KW - Payout policy

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Financial constraints and the sustainability of dividend payout policy

Abstract

UN SDGs

Keywords

Access to Document

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