Intellectual capital and dividend policy: the effect of CEO characteristics

PurposeThe paper aims to empirically test the impact of intellectual capital (IC) on a firm's dividend policy. Further, the authors investigate the moderator effect of Chief Executive Officer's (CEO) characteristics (gender, age and education) on this relationship.Design/methodology/approa...

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Bibliographic Details
Published in:Journal of intellectual capital 2022-01, Vol.23 (1), p.127-143
Main Authors: Battisti, Enrico, Nirino, Niccolò, Christofi, Michael, Vrontis, Demetris
Format: Article
Language:English
Subjects:
Chief executive officers
Competition
Competitive advantage
Data analysis
Dividend distributions
Dividend policy
Efficiency
Empirical analysis
Hypotheses
Influence
Intellectual capital
Investments
Social responsibility
Stockholders
Value creation
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Summary:PurposeThe paper aims to empirically test the impact of intellectual capital (IC) on a firm's dividend policy. Further, the authors investigate the moderator effect of Chief Executive Officer's (CEO) characteristics (gender, age and education) on this relationship.Design/methodology/approachThe research was carried out on the main Chinese listed companies reported on the CSI 100 Index from 2016 to 2018. To assess the impact of IC on the dividend policy and then the moderating effect of the characteristics of the CEOs, the authors used a fixed effects panel data analysis.FindingsThe results suggest a positive impact of IC on dividend policies. In addition, this relationship is enhanced when the CEO is a woman, and the lower the age the higher the effect is.Originality/valueTo the best of the authors' knowledge, this is the first empirical study that explores the effect of IC on a firm's dividend policy in an emerging country. Specifically, this paper demonstrates the impact that IC has on the creation of shareholder value. Furthermore, considering the characteristics of the CEOs, this study tests new moderating effects in the relationship between IC and value creation and highlights how IC, dividends and CEO characteristics can be useful in aligning interests between ownership and management, enriching the debate on agency theory.
ISSN:1469-1930
1758-7468
DOI:10.1108/JIC-11-2020-0354