RESEARCH ARTICLE
Is it just for shareholders or for all stakeholders? Evidence based on carbon emissions and cash dividends from China
Desheng Liu,
Yizhen Wang,
Mingsheng Li,
Desheng Liu
Qilu University of Technology (Shandong Academy of Sciences), Jinan, China
Search for more papers by this authorYizhen Wang
Qilu University of Technology (Shandong Academy of Sciences), Jinan, China
Search for more papers by this authorCorresponding Author
Mingsheng Li
Bowling Green State University, Bowling Green, Ohio, USA
Correspondence
Mingsheng Li, Bowling Green State University, Bowling Green, OH 43403, USA.
Email: [email protected]
Search for more papers by this authorDesheng Liu,
Yizhen Wang,
Mingsheng Li,
Desheng Liu
Qilu University of Technology (Shandong Academy of Sciences), Jinan, China
Search for more papers by this authorYizhen Wang
Qilu University of Technology (Shandong Academy of Sciences), Jinan, China
Search for more papers by this authorCorresponding Author
Mingsheng Li
Bowling Green State University, Bowling Green, Ohio, USA
Correspondence
Mingsheng Li, Bowling Green State University, Bowling Green, OH 43403, USA.
Email: [email protected]
Search for more papers by this authorFirst published: 25 June 2024
Desheng Liu, Yizhen Wang and Mingsheng Li contributed equally to this work.
Abstract
As people become more aware of the catastrophic risk of carbon emissions, investors demand compensation for their exposure to carbon emission risk. However, it is unclear how a firm's carbon emissions affect its dividend policy to cater to shareholders and its implications for other stakeholders. Using publicly listed A-share companies in China, we find that carbon emissions positively affect firms' cash dividends. The positive effect is more pronounced for firms with higher growth, better performance and those in heavily polluting industries. Furthermore, the cash dividends induced by carbon emissions benefit all stakeholders by reducing agency costs and promoting green innovations.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available on request from the corresponding author. The data are not publicly available due to privacy or ethical restrictions.
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