Workshop Series: Donghui Li
This paper investigates the heterogeneity of the impact of cash-flow uncertainty on dividend payout policy (dividend cash-flow sensitivity), based on a sample of 32,894 firms across 50 countries spanning from 1996 to 2007. The empirical findings suggest that the negative impact of cash-flow uncertainty on dividend payout policy exists in majority of the sample countries (40 out of 50 countries), and this negative dividend cash-flow sensitivity is negatively influenced (thus strengthened) by a variety of macro corporate governance measurements, such as the levels of corruption, corporate and public sector ethics, protection of minority shareholders and financial reporting quality. This has indicated that good macro corporate governance environments facilitate the timeliness and trustworthiness of released public information, thus firms in these environments are less susceptible to disguise their cash-flow risk and are less exposed to agency costs.
Associate Professor Donghui Li, graduated from the School of Banking and Finance, University of New South Wales, with PhD of Finance in 2001. His research focuses on international corporate governance and financial institutions. His publications appear in the following top tier finance journals: Journal of Finance; and Journal of Financial and Quantitative Analysis。In addition, his publications appear in the following internationally renowned finance journals: Journal of Banking and Finance; Journal of Risk and Insurance; Journal of International Money and Finance; among many others. He serves as a referee for numerous finance journals, including Journal of Banking and Finance, Journal of Risk and Insurance, Australian Journal of Finance, and Accounting and Finance. He has successfully obtained significant research funding both in Australia and internationally.