Analysis of the influence of corporate social responsibility on dividend payments in the Brazilian context
DOI:
https://doi.org/10.14392/asaa.2024170306Keywords:
Corporate Social Responsibility, Dividends, StakeholdersAbstract
Objective: This study investigated the influence of Corporate Social Responsibility (CSR) on dividend payments within the Brazilian context. The research aimed to address how CSR practices, measured by the Environmental, Social, and Governance (ESG) score, impact the dividend distribution of companies listed on the Bolsa, Brasil e Balcão - B3.
Method: To analyze this relationship, a descriptive and documentary quantitative analysis was conducted using a sample of 136 companies over the period from 2012 to 2022. Ordinary Least Squares regressions were employed, with payout, total dividends, and dividend yield as independent variables, and their relationships with eight dependent variables were examined.
Results: The findings indicate that companies with greater engagement in CSR practices, as reflected by higher ESG scores, exhibit a more robust dividend policy. A positive and significant correlation was observed between ESG scores and the Total Dividend and dividend yield indicators, although the relationship with payout was positive but not statistically significant. Furthermore, it was found that for each unit increase in the ESG score, there is an estimated increase of 1.465 in total dividends and 0.4 in dividend yield.
Contributions: These findings contribute to the literature on corporate governance and finance by highlighting the importance of CSR in the stability of dividend distribution and in stakeholder relationships, offering insights for managers and investors regarding the impact of sustainability on corporate financial decisions.
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