Corporate social responsibility and dividend policy in Sri Lankan firms: A data triangulation approach

Abstract

This study investigates the relationship between corporate social responsibility (CSR) and dividend policy (DP) using a data triangulation approach in the Sri Lankan context. The findings of the secondary data approach suggest that there is a positive impact from environmental and social CSR on both the likelihood to pay dividends and its payout. Findings of the primary data approach propose that ethical and philanthropic CSR dimensions show a positive impact on both likelihood to pay dividends and its payout. The findings of the triangulation approach revealed that CSR and DP tend to rise together. Hence, we argue that the generosity of the management paves the way towards shareholders' prosperity. This is the first study to investigate the CSR‐DP puzzle using a data triangulation approach. Future researchers could use this study as a guideline, if they intend to conduct a research study through data triangulation approaches especially in dividend policy and also in finance discipline.