Purpose

The purpose of this study is to examine whether corporate social responsibility (CSR) affects dividend policy (the propensity to pay dividends as well as the dividend payout ratio) and what role family ownership plays in this regard in an emerging market.

Design/methodology/approach

The study uses a sample of 1,480 observations from Pakistan for the period 2010–2016 and accounts for Hackman self-selection bias and endogeneity issues using a robust regression analysis. CSR activity is measured by CSR score developed through a content analysis of firms' annual reports.

Findings

The study finds that the greater number of CSR activities increases the propensity to pay dividends, but reduces the dividend payout in dividend-paying firms. On the other hand, in family firms, the greater number CSR activities decreases the propensity to pay dividends, but increases the dividend payout in dividend-paying firms. The findings hold for a series of robustness and sensitivity checks, for example, alternative measures, specifications and estimators.

Practical implications

A trade-off between firms' CSR activities and dividend policy needs to be the point of concern for investors, minority shareholders and policy makers. The role of the non-executive and independent directors becomes more important, especially in the family firms where family members sitting on the boards may drive CSR activities in their own interests opportunistically. The potential opportunistic behaviour of family members warrants the need for policy reform initiatives to strengthen the protection of other stakeholders' interests.

Originality/value

The study highlights that family owners' efforts to preserve their socio-emotional wealth in family firms affect the relationship between CSR activities and dividend policy. Further, the relationship between CSR and dividend policy in emerging markets is different from developed markets. This study simultaneously focuses on both the propensity to pay dividends and the amount of dividend payment and documents that the implications of CSR are different for them.

中文翻译：

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企业社会责任与分红政策：家族企业的战略选择

目的

本研究的目的是研究企业社会责任 (CSR) 是否会影响股息政策（支付股息的倾向以及股息支付率）以及家族所有权在新兴市场中在这方面发挥的作用。

设计/方法/方法

该研究使用了 2010-2016 年期间来自巴基斯坦的 1,480 个观测样本，并使用稳健的回归分析来解释哈克曼自选择偏差和内生性问题。企业社会责任活动是通过对公司年度报告的内容分析得出的企业社会责任分数来衡量的。

发现

研究发现，更多的企业社会责任活动增加了支付股息的倾向，但减少了支付股息公司的股息支付。另一方面，在家族企业中，更多的企业社会责任活动降低了支付股息的倾向，但增加了支付股息的公司的股息支付。这些发现适用于一系列稳健性和敏感性检查，例如替代措施、规范和估计量。

实际影响

公司的企业社会责任活动和股息政策之间的权衡需要成为投资者、小股东和政策制定者关注的焦点。非执行董事和独立董事的作用变得更加重要，尤其是在家族企业中，在董事会中的家族成员可能会出于自身利益投机取巧地推动企业社会责任活动。家庭成员潜在的机会主义行为需要采取政策改革举措来加强对其他利益相关者利益的保护。

原创性/价值

该研究强调，家族所有者在家族企业中维护其社会情感财富的努力会影响企业社会责任活动与股息政策之间的关系。此外，新兴市场的企业社会责任与股息政策之间的关系与发达市场不同。本研究同时关注支付股息的倾向和支付股息的金额，并证明企业社会责任对它们的影响是不同的。