Detalhes do Documento

This study investigates the relationship between Environmental, Social, and Governance (ESG) performance and dividend payout policies among European firms listed on Euronext. The primary objective is to determine whether firms with higher ESG scores are more likely to distribute dividends. Based on a database of companies from Euronext stock exchange countries, our results reveal a positive and statistically significant association between overall ESG scores and dividend payout ratios. Among the three ESG dimensions, Governance exerts the strongest positive influence, followed by Environmental and Social scores. The relationship is less consistent when dividend yield is considered as the dependent variable. Additionally, insider ownership and board independence positively correlate with higher dividend payouts, while greater outside ownership is negatively related. These findings indicate that firms with superior ESG performance and robust governance structures tend to adopt more shareholder-friendly dividend policies, reflecting a commitment to rewarding shareholders and maintaining investor confidence. This suggests that ESG considerations are increasingly integrated into corporate and policymaker interest in sustainable business practices within the European market.