How Does Managerial Ability cherish Dividend Payout decision during Economic Policy Uncertainty?

Abstract

Dividend decisions are the road map of investment and hence, carry huge weightage for investors. During periods of economic policy uncertainty dividend cut is devastating and brutal. As previously suggested that EPU leads to decreased or no dividends offered by the firms. Current study established the argument that relationship between EPU and dividend payout changes through moderating role of managerial ability. It was hypothesized that a capable and challenging manager fights EPU disasters through his skills, ability to forecast and efficiency and builds a sustained relationship between EPU and dividend payout. An extensive data set from 2006-2015 was taken from 1,153 non-financial listed firms of China. Results supported the hypothesis robustly. &nbsp