Author(s)

Nan Meng ¹

Affiliation(s)

¹ School of Business, International Studies University, Xi'an, Shaanxi, 710128, China

Corresponding Author

Nan Meng

ABSTRACT

Based on principal-agent theory and signal transmission theory, this paper explores two possible paths through which corporate ESG performance affects dividend smoothing. Taking Shanghai and Shenzhen A-share listed companies from 2013 to 2022 as the research object, the empirical study finds that corporate ESG performance can significantly improve dividend smoothing, i.e., corporate ESG performance has a facilitating effect on dividend smoothing. This research conclusion still holds after the robustness test, i.e., replacing the dividend smoothing measure and regression model; and the endogeneity test, using the PSM method. Further analysis reveals that the contribution of corporate ESG performance to dividend smoothing is more pronounced when the firms are in an environment with stronger internal control and higher analyst attention. The findings of this research not only expand the research boundaries of principal-agent theory and signaling theory applied to dividend policy, but also enrich the economic consequences of corporate ESG performance, which can provide certain empirical evidence for the healthy and orderly development of China's capital market.

KEYWORDS

Dividend Smoothing, ESG Performance, Internal Control, Analyst Attention

CITE THIS PAPER

Nan Meng, Moderating Role of Analyst Attention and Internal Control on the Relationship of Corporate ESG Performance and Dividend Smoothing. Accounting and Corporate Management (2024) Vol. 6: 86-92. DOI: http://dx.doi.org/10.23977/acccm.2024.060112.

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