| dc.description.abstract | This study uses data from the Taiwan Economy Journal (TEJ) on listed companies in Taiwan from 2013 to 2023 to explore the relationship between research and development (R&D) expenses and corporate dividend policies. The dividend policies are categorized into four types: dividend increase, dividend decrease, unchanged dividend, and dividend omission. These are paired two by two to create six groups of binary dummy variables representing dividend policy tendencies, while R&D policy is measured by R&D expenditure intensity. This study also conducts subsample analysis based on R&D intensity and profitability, examines the impact of macroeconomic conditions through yearly clustering, and analyzes by industry sector.
The empirical results show that in the subsample paired with dividend decreases and dividend increases, higher R&D intensity is positively related to a dividend decrease policy. In the subsample analysis, this relationship is found only in companies with high R&D intensity and low profitability. During the yearly analysis, it is observed that in poorer economic conditions (2022 and 2023), R&D intensity is positively related to the dividend decrease policy. In the industry-specific analysis, the relationship between R&D intensity and dividend policy is notably significant only in the electronics industry. | en_US |