%0 Journal Article
%T ESG and Dividend Payout under the Consideration of Agency Cost
%A Lie-Huey Wang
%J Journal of Mathematical Finance
%P 359-384
%@ 2162-2442
%D 2025
%I Scientific Research Publishing
%R 10.4236/jmf.2025.152015
%X This study examines 1495 publicly listed companies over the period 2016-2022 to assess whether higher ESG (environmental, social, and governance) scores are associated with greater cash dividend payouts, and to explore how this relationship varies under both performance-driven and governance-driven agency cost scenarios. The results reveal that firms with higher ESG scores are associated with greater dividend payouts. Among the three pillars, the social and governance scores exert a stronger influence on dividend payout than the environmental score. The positive ESG-dividend relationship is most pronounced in firms facing greater agency costs, including young, low asset efficiency, and low free cash flow firms. The social score has a particularly strong effect in firms with non-dual leadership structures or low institutional ownership. The environmental score is most influential in firms with high institutional ownership, reflecting institutional investors’ sensitivity to environmental performance.
%K Environmental
%K Social
%K and Governance (ESG)
%K Dividend Payout
%K Agency Cost
%K Asset Efficiency
%K Institutional Ownership
%K CEO-Duality
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=142746