Dividends, Investment and Cash Flow Uncertainty: Evidence from Thailand


  • กรแก้ว อนุรักษ์ชนะพล ปริญญาโททางการเงิน คณะพาณิชยศาสตร์และการบัญชี มหาวิทยาลัยธรรมศาสตร์


Dividends, Investment, Cash flow uncertainty, External financing, Asymmetric information, Agency cost, Crisis, Non-crisis


This study examines the relationship between dividends and investment with cash flow uncertainty and how firms manage cash flow uncertainty. The sample in the Stock Exchange of Thailand over the period from 2008-2020 based on a yearly basis by using piecewise and cubic regressions. The results demonstrate that dividends and investment are nonlinear relation with the different levels of cash flow uncertainty due to agency cost and asymmetric information. Other factors, including external cash, operating cash flow, growth opportunities, size, profitability, and financial leverage are investigated. However, no effect from the global financial crisis and the COVID-19 pandemic on dividends and investment decisions with cash flow uncertainty. When facing cash flow uncertainty, firms slightly reduce investment while keeping dividends. External finance is the major method to manage uncertain cash flow.


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