Authors
Pedro Verga Matos, Victor Barros, Joaquim Miranda Sarmento
Publication date
2020/1
Journal
Sustainability
Volume
12
Issue
21
Pages
8804
Publisher
Multidisciplinary Digital Publishing Institute
Description
Sustainability has become a significant issue for firms and investors throughout the world, although it cannot be attained if policies impact the stability of firms’ dividend policies. In this paper, we use data from the Stoxx Euro 600 firms from 2000 to 2019 and the ESG (environmental, social and governance) scores from Thomson Reuters to assess the relationship between ESG responsibility performances and the firm’s dividend policy. The results indicate that more sustainable firms exhibit a more stable dividend payout. This result is also valid when the ESG pillars are analysed, specifically, the environmental and governance pillars. The findings further suggest that higher ESG scores reveal better long-term alignment with shareholders and other stakeholders due to more proportionally stable profit sharing.
Total citations
20212022202320249132922
Scholar articles
P Verga Matos, V Barros, J Miranda Sarmento - Sustainability, 2020