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The Relative Valuation Of Socially Responsible Firms: An Exploratory Study, Ali M. Fatemi, Iraj Fooladi, David Wheeler
The Relative Valuation Of Socially Responsible Firms: An Exploratory Study, Ali M. Fatemi, Iraj Fooladi, David Wheeler
Ali M Fatemi
In this paper we develop a model in support of the argument that the imposition of a “social responsibility” constraint could lead to increased profitability of the firm. To empirically test this, we compare the characteristics of firms making up the DS 400 index with that of a control group of firms not included in the DS 400. We find that socially responsible firms are, at a minimum, not dominated by their peer firms on the basis of returns. They are also not dominated by their peers on the basis of their betas, but dominate them on the basis of …
Yes, Dividends Are Disappearing: Worldwide Evidence, Ali M. Fatemi, Recep Bildik
Yes, Dividends Are Disappearing: Worldwide Evidence, Ali M. Fatemi, Recep Bildik
Ali M Fatemi
This study examines the patterns of payout policies worldwide. Utilizing data from a sample of more than 17,000 companies, from 33 different countries, we show that there is a significant worldwide decline in the propensity to pay dividends. Most of the decline is due to the payout policies of smaller and less profitable firms with comparatively more investment opportunities. We find that larger firms, firms with higher profitability, and firms with low growth opportunities have a greater propensity to pay dividends. The proportion of dividend payers varies substantially across industries as well. However, the proportion of firms paying dividends has …