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.
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