The generosity of the management leads to shareholders' prosperity.

Key finding of the study

The findings of the triangulation approach revealed that CSR and DP tend to rise together implying that the generosity of the management leads to shareholders' prosperity.

Authors

Dewasiri N.J., Sabaragamuwa University of Sri Lanka

Abeysekera N., Open University of Sri Lanka

Summary of the study

This study investigates the relationship between corporate social responsibility (CSR) and dividend policy (DP) using a data triangulation approach in the Sri Lankan context. The findings of the secondary data approach suggest that there is a positive impact from environmental and social CSR on both the likelihood to pay dividends and its payout. Findings of the primary data approach propose that ethical and philanthropic CSR dimensions show a positive impact on both likelihood to pay dividends and its payout. The findings of the triangulation approach revealed that CSR and DP tend to rise together. Hence, we argue that the generosity of the management paves the way towards shareholders' prosperity. This is the first study to investigate the CSR-DP puzzle using a data triangulation approach.

Published in

Journal of Public Affairs

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